Cemex Withdraws $650 Million Overseas Bond Sale: Mexico Credit
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Cemex SAB, the largest cement maker in the Americas, scrapped a $650 million bond offering today as Europe’s debt crisis eroded demand for higher-yielding debt and undermined the company’s efforts to refinance bank loans.
The company pulled the sale of eight-year bonds because of “volatility” in global markets, said Jorge Perez, a spokesman for the Monterrey, Mexico-based company. The yield on Cemex’s benchmark dollar bonds due in 2020 jumped 40 basis points, or 0.40 percentage point, to 9.74 percent at 5 p.m. New York time, the highest since October. The extra yield investors demand to own emerging-market corporate debt instead of U.S. Treasuries widened 9 basis points to 330, according to JPMorgan Chase & Co.