Mexico’s Cemex plans bond issuance worth $1 billion

imageStock Markets5 hours ago (Jun 03, 2020 01:20AM ET)

(C) Reuters.

MEXICO CITY (Reuters) – Mexican cement maker Cemex (MX:CEMEXCPO) said late on Tuesday that it plans to issue $1 billion worth of bonds, with a 7.375% coupon and a maturity date of June 2027, to support ongoing business activities, including debt repayment.

The bonds will be issued with an option to repurchase them four years prior to maturing and the offering period will close on June 5, the Monterrey-based company said in a statement to the stock market.

On Monday, Cemex warned its business may suffer if recent rule changes announced for Mexico’s electricity market end up limiting the generation of renewable energy and imposing new costs.

Mexico’s energy regulator approved last week new rates that electricity providers must pay the national power utility for transmission, which a prominent business lobby group estimated were between five and 10 times higher than current prices.

Cemex said that while the impact of these changes was not yet clear, they could have an “adverse effect” on its business, operations and contractual obligations in the country.

In late April, it already forecast that its debt will increase between $25 million and $50 million this year as Latin America’s second-largest economy reels from the impact of the novel coronavirus.

Mexico’s Cemex plans bond issuance worth $1 billion

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.