Advanced Theory & Practice of Bonds

Recognized under IBF-FTS | 7-8 June 2022 | 12 CPD Hours

Comprehensive 2-day course on bonds designed for private bankers, wealth managers and advisors.

Mexican cement company Cemex is planning to issue perpetual dollar bonds on its second sale in the international bond market this year. The planned perpetual deferable and subordinated hybrid securities have an expected rating of B, three notches below its issuer rating of BB. S&P states that the notching down is on account of subordination (two notches) and the option to defer coupons (one notch), but added that the likelihood of a coupon deferral is relatively low. The proposed perpetuals carry a coupon step-up of 25bp on the first reset date 5.25Y after issuance and a further 75bp in year 15, if not called earlier. Bank of America, Citi and HSBC will be the bookrunners of the deal. Proceeds will be used for general corporate purposes, including repaying existing debt. 

Cemex’s dollar bonds remained unchanged with its 5.45% 2029s trading at 110.25, yielding 3.06%.

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