Camargo Corrêa Cimentos (Cauê), the cement unit of Brazilian construction firm Camargo Corrêa, began a 360m-real (US$138m) debentures issue Tuesday, Cauê said in a filing to the country’s securities regulator (CVM). Local bank Banco Pactual is the lead coordinator for the issue that involves 36,000 bonds priced at 10,000 reais each. The debentures are split into two series, the first for 10,000 bonds that expire 2007 and a second series for the remaining bonds that expires 2009.
Camargo Corrêa Cimentos is Brazil’s fifth largest cement company in terms of sales, with a 6Mta capacity. In the first nine months of 2004 it produced 2.6Mt. The company is expected to seek growth through acquisitions in Brazil and outside the country.
