HomeMarket NewsCemex in talks to refinance $3B bank debt - Bloomberg

Cemex in talks to refinance $3B bank debt – Bloomberg

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Cemex (NYSE:CX) experienced a decline of 4.5% in Thursday’s trading session following the revelation that CEO Fernando Gonzalez and CFO Maher Al-Haffar are currently engaged in discussions with banks about refinancing the company’s $3 billion credit facility, as reported by Bloomberg.

In an interview, Al-Haffar stated, β€œWe are currently in discussions with our banking partners regarding the refinancing of our bank debt, as it represents the largest portion of our maturing debt.”

The need for refinancing arises as the Mexican peso has appreciated over 15% in the past year. This has proven advantageous for Cemex, as most of its debt is denominated in dollars and euros. However, if the peso continues to strengthen in the long term, the situation could become more complex, as explained by Gonzalez. He stated, β€œThe dynamics might become intricate as we adjust prices in accordance with inflation in pesos. If the peso appreciates further, prices in dollar terms may become significant.”

Additionally, Gonzalez mentioned that Cemex (CX) intends to gradually divest assets in emerging markets such as Costa Rica and El Salvador to redirect its focus towards its businesses in the United States and Europe.

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