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UPDATE 3-Mexico's Cemex to join clean energy fund

Gabriela Lopez
Tuesday, 30 Oct 2012 | 8:00 PM ET

* New energy fund to issue certificates

* Projects will not be consolidated into Cemex balance sheet

MEXICO CITY, Oct 30 (Reuters) - Mexican cement maker Cemex said on Tuesday it would join a clean energy fund that is expected to raise $300 million through a public offer of certificates on the Mexican stock exchange.

Cemex said its participation in the fund would be limited to management and advisory activities, and that it would retain a minority equity stake no higher than 10 percent in sponsored projects.

In February, the Monterrey-based company said it planned to create an investment fund this year that would finance some $1 billion in energy projects.

This initiative included the $300 million certificate offer while the rest of the money was expected to come from a loan.

Neither the fund nor the sponsored projects will be consolidated into Cemex's balance sheet, the company said.

Luis Farias, Cemex's vice president for energy and sustainability, told Reuters the company planned to list the certificates by the end of the first quarter of 2013. He said the full $1 billion would be executed through 2017.

The first project will be the construction of a wind-powered park, Ventika, in the northern industrial state of Nuevo Leon, Farias said.

Cemex recently posted a narrower third-quarter loss compared with a year ago, bolstered by stronger results in Mexican and U.S. markets.

The company has been easing its way back to financial health by refinancing its huge debt pile and pushing back payments for up to four years

Cemex shares treaded 0.25 percent lower at 11.80 pesos on Tuesday afternoon.