Displaying items by tag: Finance
Sarbottam Cement concludes initial public offering
19 March 2024Nepal: Sarbottam Cement's initial public offering (IPO) concluded on 8 March 2023, with the company issuing 13% of its capital. SSPro News has reported that this corresponds to a value of US$35m. Of the issued shares, 40% were allocated to qualified institutional investors. The issue was oversubscribed by a factor of 18.
The last traded price of Sarbottam Cement’s shares had risen by 10% on its first trading day on 19 March 2024.
S&P upgrades Cemex to Investment Grade
14 March 2024Mexico: Standard & Poor's (S&P) has raised Cemex's long-term global scale issuer credit rating to Investment Grade (BBB-). The upgrade is attributed to Cemex's robust financial and operating performance, effective deleveraging strategy, and adaptable capital allocation.
The upgrade to Investment Grade marks a significant achievement for Cemex, reflecting its record results and consistent financial performance over several years.
"Achieving an investment-grade credit rating from S&P is a very important milestone for Cemex," said CEO Fernando A González. In 2023, Cemex reported a 25% growth in EBITDA and more than a doubling in Free Cash Flow after maintenance capex.
S&P also elevated Cemex's national scale issue-level rating in Mexico from mxAA to mxAA+.
Cemex to issue US$322m in sustainable bonds
19 February 2024Mexico: Cemex will issue US$322m-worth of long-term sustainability-linked bonds on 20 February 2024. Noticias Financieras News has reported that the issuance will take place in two series: one of US$117.3m, with a 2.6-year floating rate, and one of US$205.3m, with a 6.6-year floating rate. HSBC will act as the intermediary.
Cemex said “The net proceeds from the reopening of the issues will be used to repay debt, seeking to accelerate the path to an investment grade credit rating."
Cementir reports earnings growth in 2023
13 February 2024Italy: Cementir's full-year 2023 results show sales of Euro1.69bn, down by 1.7% year-on-year from full-year 2022 levels. Nonetheless, the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 23% to Euro411m. The company more than doubled its net cash position to Euro218m. Under its Plan 2024 – 2026, Cementir aims to raise its sales by 18% to Euro2bn, its EBITDA by 3.4% to Euro425m and to more than double its net cash position again to Euro600m in two years.
Chair and chief executive officer Francesco Caltagirone said "Despite an increasingly uncertain macroeconomic scenario due to growing geopolitical tensions and more restrictive monetary conditions, in 2023 the group demonstrated significant resilience, setting new records thanks to an even more diversified geographical and product mix. The general weakness in volumes, with the exception of Türkiye and China, was balanced by the improvement in operational efficiency. The new industrial plan to 2026 continues to place sustainable organic growth at the centre of our strategy, confirming all medium and long-term objectives and continuing on our path towards decarbonisation."
Xinjiang Tianshan Cement to invest US$2.36bn in 2024
08 February 2024China: Xinjiang Tianshan Cement plans to make major capital expenditure (CAPEX) investments in its operations in 2024. Reuters has reported the projected value of the investments as US$2.36bn.
Enforcement Directorate searches The India Cements locations
01 February 2024India: The Indian Enforcement Directorate has conducted searches at locations associated with The India Cements. The directorate is seeking evidence of alleged violations of the Foreign Exchange Management Act (FEMA). Business Today Online News has reported that the current scope of suspected violations totals US$30 – 36m.
India Cements has yet to comment on the investigation.
PPC completes divestment of Cimerwa stake
26 January 2024Rwanda: South Africa-based PPC has completed the sale of its 51% stake in the Rwandan cement producer to Kenya-based Devki Group subsidiary National Cement, for US$42.5m. The divestiture advances PPC's strategic exit of Central and East Africa. As a result, the group's financial position is now cash positive. It had previously reduced its debt by 50% to US$20.3m from US$40.7m between March 2020 and September 2023.
PPC CEO Matias Cardarelli said "I am pleased with the timely completion of the sale of our stake in Cimerwa. The disposal allows us to focus on our core Southern African markets, where we see opportunities to drive improved profitability and secure a more sustainable return on capital."
China Tianrui Group Cement secures loan
22 January 2024China: China Tianrui Group Cement has signed a new loan facility agreement. Reuters has reported the value of the loan as US$23.1m.
Hetauda Cement Industry to resume production in February 2024
19 January 2024Nepal: Hetauda Cement Industry (HCI) will resume cement production at its Hetauda cement plant in early February 2024, following a suspension due to coal shortages. HCI uses 36,000t/yr of coal, and currently has 600t in stockpiles. The República newspaper has reported that on-going issues with equipment have reduced the Hetauda cement plant’s effective capacity to 10,000 bags per day. Additionally, HCI has failed to find a buyer for a shipment of 225,000 bags of cement. The Nepali government is reportedly considering paying new subsidies to the company.
General manager Basanta Raj Pandey said "The management of the factory has requested the Office of Prime Minister and Council of Ministers and the Ministry of Industry, Commerce and Supplies to provide subsidies to help resume its production."
Nepal’s Minister for Industry, Commerce and Supplies Ramesh Prasad Rijal said "The Prime Minister and his government are discussing arranging all possible subsidies to bring the industry back into operation as soon as possible."
Gaurav Rajput appointed deputy general manager finance and accounts at Dalmia Bharat Group
17 January 2024India: Dalmia Bharat Group has announced its promotion of Gaurav Rajput to the role of deputy general manager finance and accounts. Rajput joined Dalmia Bharat Group from IT company IBM in 2023. He previously worked for LafargeHolcim India and ACC.