In the restructuring of the group, Spain’s FCC plans to refinance the syndicated debt of Cementos Portland Valderrivas (CPV), in which it owns a 77.9 per cent stake. Funds from FCC’s capital increase will be used to write of EUR325m of EUR823m of the total amount. CPV will then refinance the outstanding EUR500m over a period of five years.

The refinancing will also enable the Spanish cement producer to obtain a reduction in interest rate from 4.5 per cent (Euribor) to 3.5 per cent. Key creditors are Santander, BBVA, CaixaBank and Bankia Kutxabank. In addition, the refinancing will buy the company time as it waits for Spanish cement demand to stabilise.

At the end of March, CPV declared a net debt of EUR1,382m due to low sales and financial weakening.