Argos Takes Advantage

Cementos Argos, Colombia’s largest cement producer, has sold $105.8 million worth of commercial paper in the domestic market. The amount of paper issued was raised from $60 million in the face of strong demand from local investors. Argos sold 180-day and 12-month paper with rates equal to the benchmark DTF plus 1.24% and 1.42% respectively. The company decided to take advantage of the current high liquidity in the market combined with low interest rates to raise funds to pay down part of its expensive short-term debt. The debt was accrued following acquisitions over the past 18 months. Argos, which controls around 51% of the domestic cement market, is a subsidiary of Colombia’s largest conglomerate, Medellín-based GEA.