Cement Company Aims for Sub-7

Guatemala’s Cementos Progreso is indicating initial price thoughts of 7% for a $300m 2023 NC5 bond pricing as soon as today, according to sources following the deal. The BB+ cement company concluded a US, European and LatAm roadshow Monday. Deutsche Bank is managing. Comps include Mexican Grupo Cementos Chihuahua’s (BB minus) 2020 NC3 bond, trading Monday to yield 7.37% and Cemex’s (B/BB minus) 2023, trading around 6.99%. Progreso, founded in 1899, produces and distributes cement and construction materials. It held a $30m private placement in 1998, led by Citi, and has also raised domestic debt.