Aboitiz secures loan to part-fund cement venture

Aboitiz Equity Ventures, Inc. (AEV) has signed an agreement for a US$400m (PHP18.7bn) loan that will partly finance its venture into the cement sector in the Philippines.

In a disclosure to the stock exchange dated 20 August 2015, AEV said it "signed a facility agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd to obtain a bridge loan" of up to US$400m.

"The proceeds of the loan will be used to partially finance AEV's investment in holding companies for the purpose of the acquisition of the various Philippine assets and businesses of Lafarge SA, including the cement production and other cement related businesses and services," the disclosure read.

Last month, AEV formalised its joint venture with Irish building materials firm CRH plc for this foray into the cement business. The transaction is expected to be completed within the second half of this year.

AEV CRH Holdings, Inc. earlier this month offered to purchase shares owned by locally listed Lafarge Republic, Inc.'s majority shareholders. AEV CRH is a 60-40 joint venture company of AEV and Cement Roadstone Holdings, Inc., a domestic firm and wholly-owned subsidiary of CRH Philippines Holdings BV.