LISTED cement manufacturer Cemex Holdings Philippines Inc. (CHP) has signed a term loan deal amounting to the Philippine peso equivalent of $280 million with BDO Unibank Inc. to refinance an existing loan.
At Wednesday’s foreign exchange rate, the loan is equivalent to P13.93 billion.
In a disclosure to the Philippine Stock Exchange (PSE), CHP said it signed on Wednesday a senior unsecured peso term loan with BDO amounting to $280 million “to refinance a majority of CHP’s outstanding long-term loan with New Sunward Holding B.V., a related company.”
The loan has a tenor of seven years from the date of the initial drawdown, and will consist of a fixed rate and a floating rate tranche.
“We are confident that this endeavor underscores the strength of our operations, as we seek ways to further solidify our business position and improve our capital structure,” said Pedro Palomino, CHP president.
BDO Capital & Investment Corp. acted as the sole structuring agent and sole mandated underwriter for the refinancing loan. It had also served as CHP’s sole domestic underwriter for its P25.1 billion initial public offering (IPO) at the PSE in July last year.
“This deal is a testament to our continued solid support of CHP’s business and positive long-term outlook for CHP’s prospects. We believe that the financing structure that we’ve put in place further strengthens the financial position of CHP,” BDO Capital President Eduardo Francisco said.
Cemex is one of the leading cement manufacturers in the Philippines, producing cement and cement products such as ready-mix concrete and clinker through its brands Cemex, APO, Island, and Rizal.
It is an indirect subsidiary of global cement giant Cemex S.A.B. de C.V., which is listed on the Mexican Stock Exchange and the New York Stock Exchange.