Cement Maker Shops Short MXP Bond

Cemex plans to sell up to MXP2bn in 2010 floating-rate notes in the Mexican market as soon as September 24. Proceeds from the deal rated A+ on a national scale will repay short-term bank credit paying Libor+35bp that was used to refinance debt. HSBC is managing the transaction. The sale would be the 10th from a MXP30bn shelf, and follow a MXP1bn 2010 bond priced in April at TIIE+36bp via ING and Santander. The choice of such short tenors for such a respected name highlights the reluctance of the local buyside to take on any long term commitments in the current choppy market.