Loma Negra IPO has limited impact for Brazil's InterCement

By
Monday, November 6, 2017

The successful IPO held by Loma Negra, the Argentine subsidiary of Brazilian cement producer InterCement, will have only a limited impact for the company.

At the end of October, the Loma Negra IPO raised US$1.09bn from the sale of shares.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

According to Standard & Poor's, the proceeds from the offer should contribute to InterCement's debt reduction.

"However, the lower volume and the high idle capacity of Brazilian operations put pressure on the generation of the company's cash flow, and the consolidated outflow of the group – despite the improvement – should remain around 5.0x until the end of 2017," said the rating agency.

The cement producer is controlled by construction firm Camargo Corrêa, one of dozens of construction companies involved in the massive Lava Jato corruption probe.