Mexican cement company Cemex has initiated talks with its core banks to renegotiate the majority of its outstanding debt: $14.5 billion in syndicated and bilateral obligations.
"While Cemex is currently focused on this course of action as the best opportunity to quickly achieve maximum financial flexibility, it will continue to consider other strategies including asset sales," says the cement producer in a statement regarding the $14.5 billion refinance. "While the discussions are ongoing, the company intends to meet all its obligations across both bank and capital markets debt," it adds, saying that completion of the bank debt renegotiation might require consent from all lenders. It is not clear which institutions will lead the second round but market commentators expect some, or all of BBVA, Citi, HSBC, RBS and Santander to be involved.