Brazil's Camargo Correa To Issue $1.66B In Commercial Papers
SAO PAULO (Dow Jones)-Brazil's construction company Camargo Correa SA is planning to raise about 3 billion Brazilian reals ($1.66 billion) from the issue of commercial papers, Fitch rating agency said in a press release late Friday.
The company will use the proceeds of the issue to finance the acquisition of a minority stake in Portuguese cement maker Cimentos de Portugal, or Cimpor (CPR.LB).
Earlier this year, the company reached agreements to acquire a 31.12% stake in Cimpor, for a total amount of approximately BRL3.5 billion.
'Strategically, Fitch views the acquisition positively. It will allow Camargo to increase its presence in the global cement market, and it should result in synergies with Camargo's highly correlated core businesses (cement, engineering and construction). Cimpor's presence in 13 countries, including Brazil where it operates six cement plants and 32 ready mix units, would further improve Camargo's geographic diversification,' Fitch said.
The commercial papers, which would mature in six months, was rated at F1(bra) by Fitch.
Camargo Correa is one of the largest private industrial conglomerates in Brazil. As a holding company, Camargo has full ownership interests in cement, engineering and construction companies and controlling positions in homebuilding, textiles, footwear and sportswear manufacturing companies. It also has equity interests in energy, transportation (highway concessions) and steel businesses.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@dowjones.com
About Me
- Waldemar Jezler
- For over 30 years, Brazilian-American investment banker Waldemar Jezler has worked in the finance sector. Jezler earned his Bachelor's degree in Civil Engineering from the University of São Paulo in Brazil and then went on to attend Harvard Business School for his MBA. While at Harvard, Jezler was highly involved in extracurricular activities, including a term as President of the Ibero American Club.