Swiss cement group Holcim Ltd has successfully placed €500 million of a five-year bond with a coupon of 9% and will use proceeds to refinance existing debt and for general corporate purposes.
Holcim said in a statement the bond will increase the weighted average nominal interest rate of financial liabilities by around 0.2 percentage points from 3.8% at the end of 2008 and lengthen the average maturity.
It added it has refinanced around CHF 1.7 billion ($1.52 billion) in 2009 and successfully maintained its liquidity above the target of CHF 5.3 billion including cash and unused committed credit lines.
Holcim is rated ‘BBB’ by Standard & Poor’s, Baa1 by Moody’s Investors Service and ‘BBB+’ by Fitch Ratings. Deutsche Bank, ING, Royal Bank of Scotland and Societe Generale manage the issue, IFR, a Thomson Reuters online news and market analysis service, reported. (Reuters)