More Gloria Units to DCM: CFO

After a successful $325m bond sale in which Corporacion Azucarera del Peru (Coazucar) drew $4.5bn demand from Andean-hungry investors in July, other Grupo Gloria entities are considering the bond market. “We had a successful issuance with Coazucar, very well received and which performed very well in the secondary. Not only Coazucar, but perhaps other holding companies in dairy and cement could be going to the market in 2013 or 2014,” CFO Francis Pilkington tells LatinFinance, noting interest in a similar size and tenor as the Coazucar trade. Gloria has nine units in the food and dairy segment and five in the cement sector operating in Peru, Bolivia, Ecuador, Colombia, Argentina, Puerto Rico and Uruguay, in addition to other sectors. Pilkington says Gloria is evaluating more fundraising as it actively looks at expansion in cement and dairy – where it sees excellent growth potential – through acquisitions in the countries where it already operates. Its most recent purchases include a 55% stake in Uruguayan dairy company Ecolat Uruguay and a 48% stake in Bolivian cement concrete and aggregate products manufacturer Sociedad Boliviana de Cemento (Saboce). The group owns a 75% stake in Ecuador-based dairy company Lechera Andina, a 50% stake in Argentine-based Compania Regional de Lacteos Argentina (Corlasa), and a 100% stake in Colombian milk processing company Algarra. It owns Peru-based Cement and concrete business Yura and three Yura subsidiaries cement and lime producer Cemento Sur, ammonium nitrate producer Industrias Cachimayo and concrete producer Concretos Supermix. While the group generates sufficient internal cash flow to finance growth through acquisitions, the group allows each unit to self-manage acquisitions independently and according to its own ratios of profitability and cash flows. Gloria continues to keep close tabs on the bond market and continues to see attractive pricing, Pilkington says. “We have seen other very successful issuances from other corpo