Lafarge has carried out a dual-tranche Euro 1,5 billion bond issue consisting of :
- a € 750 million tranche, 3-year maturity, annual coupon of 5.750%
- a € 750 million tranche, 7-year maturity, annual coupon of 6.125%
Lafarge, whose long-term senior debt is rated Baa2 by Moody's and BBB by Standard & Poor's, set on May 19 the terms of its new dual-tranche bond issue denominated in euros.
The issue was very well received by investors. Thanks to high demand (€ 3.1 bn orders for the 3-year tranche, and € 2.5 bn for the 7-year one) and the quality of the book, the respective spreads at launch were at the tight end of the initial price guidance, at 125 bps over the 3-year Mid Swaps, and 170 bps over the 7-year one.
This transaction enables Lafarge to benefit from the significant improvement in issuance conditions over the past few weeks on the Euro bond market. It contributes to the partial refinancing of the bank facility which was put into place for the financing of the Orascom Cement acquisition at the end of 2007.
Placement was made across a diversified investor base, mainly in France, the UK, and Germany.
HSBC, Natixis, The Royal Bank of Scotland and Société Générale acted as lead managers for this bond issue.
NOTES TO EDITORS
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 90,000 employees in 76 countries, Lafarge posted sales of Euros 17.6 billion and net income of Euros 1.9 billion in 2007.
Lafarge is the only company in the construction materials sector to be listed in the 2008 ‘100 Global Most Sustainable Corporations in the World'. Lafarge has been committed to sustainable development for many years, pursuing a strategy that combines industrial know-how with performance, value creation, respect for employees and local cultures, environmental protection and the conservation of natural resources and energy. To make advances in building materials, Lafarge places the customer at the heart of its concerns. It offers the construction industry and the general public innovative solutions bringing greater safety, comfort and quality to their everyday surroundings.