Elementia restructures debt with new seven-year loan

Elementia, SAB de CV has announced that it obtained a loan from Citi Banamex for MXN925m (US$49.6m) over a seven-year term, with payments beginning in the first half of 2020, given its two-year grace period.

The financial restructuring is part of its strategy to strengthen its balance sheet and maintain its profitable growth. The loan successfully concludes the company's commitment, as announced in 2016, of exchanging short-term for long-term debt during 2017. The proceeds will be used to prepay 100 per cent of the syndicated loan, which was used as bridge to finance the acquisition of the 55 per cent controlling stake in Giant Cement in the US.

During 2017, the company refinanced US$350m, releasing approximately US$200m in cash flow in 2017 and 2018.