Philippines: Cemex secures US$280m BDO Unibank loan

Philippines: Cemex secures US$280m BDO Unibank loan
02 February 2017

Cemex Holdings Philippines Inc has secured a loan facility from BDO Unibank Inc for the peso equivalent of US$280m to refinance an outstanding obligation just seven months after joining the equities market through a PHP25.13bn initial public offering.

In a disclosure to the Philippine Stock Exchange, the cement producer said it signed on Wednesday a senior unsecured peso term loan facility agreement with the country’s biggest lender to refinance its long-term loan with New Sunward Holding BV.

The loan will have a tenure of seven years from the date of the initial drawdown. It consists of tranches carrying a fixed rate and a floating rate.

“We are confident that this endeavour underscores the strength of our operations, as we seek ways to further solidify our business position and improve our capital structure,” Cemex President and CEO, Pedro Jose Palomino, said in the disclosure.

Cemex had earmarked proceeds from its PHP25.13bn IPO to settle short-term debts for the acquisition of its operating businesses and to subsequently free up capacity to expand its Solid Plant in Antipolo City.

The company is investing US$300m until 2019 to double the capacity of Solid cement plant to 3.4Mta from 1.9Mta and bring its total capacity to 7.2Mta from 5.7Mta.

Published under Cement News