Bloomberg

(Bloomberg) -- LafargeHolcim Ltd., the world’s largest cement maker, is selling euro-denominated bonds to finance a debt buyback.

The company is offering seven-year, 12-year and 20-year notes, according to a person familiar with the matter who asked not to be identified because they’re not authorized to speak publicly.

LafargeHolcim intends to buy back debt to lengthen its average maturity and to cut borrowing costs, it said in a statement. Corporate borrowing costs in the single currency have fallen to near the lowest in a year, helped by the European Central Bank’s bond-buying program.

Spokespeople at the Zurich-based cement maker couldn’t immediately be reached for comment on the bond sale.

According to the buyback statement, the company will prioritize three issues, totaling 1.8 billion euros ($2 billion), which mature in 2019 and 2020. It may also repurchase as much as 1.25 billion euros of notes from six issues in euros and sterling.

LafargeHolcim was formed in July through a combination of Lafarge SA and Holcim Ltd. The company last week reported a 22 percent drop in first-quarter earnings, hurt by lower prices in India and a slowdown in Brazil and Russia.

To contact the reporter on this story: Sally Bakewell in London at sbakewell1@bloomberg.net. To contact the editors responsible for this story: Shelley Smith at ssmith118@bloomberg.net, Neil Denslow, Abigail Moses

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