Holcim Philippines to tap debt market

Holcim Philippines is considering the debt market to fund its new US$450-550m cement plant in Norzagaray, Bulacan, the company's chief has said.

Speaking to local press, Eduardo Sahagun, president and CEO, said that part of the funds to construct a 2.5Mta plant will come from internally generated income while the bulk will come from the debt market, most likely from local sources. The company will decide how much to raise during the fourth quarter of this year. 

“We have no debt at the moment so we can absorb as much debt as we can to fund the project," the Business Recorder quoted Sahagun as saying. Further details of the project are expected in the third quarter following the completion of the feasibility study and design of the plant, he added.

Local producers have been encouraged by strengthening domestic demand and are in the process of increasing capacity and constructing new facilities. Holcim is also resuming operations at its grinding facility in Mabini, Batangas by the third quarter of this year which will help the company ensure steady supply as demand rises. In the first quarter of 2013, domestic consumption rose by 3.4 per cent to 4.787Mt, according to the head of the Cement Manufacturers Association of the Philippines.