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CITIBANK AND BANCO SANTANDER PROVIDE FINANCING IN CEMEX'S ACQUISITION OF SPANISH CEMENT MANUFACTURER

          CITIBANK AND BANCO SANTANDER PROVIDE FINANCING IN
         CEMEX'S ACQUISITION OF SPANISH CEMENT MANUFACTURER
    NEW YORK, July 8 /PRNewswire/ -- Citibank N.A. confirmed today that it is providing major financing for Cemex S.A.'s acquisition of the Spanish cement giant Compania Valenciana de Cementos Portland, in a purchase valued at approximately $1.25 billion.  Cemex is the largest cement producer in North America, and one of Mexico's largest industrial companies.
    Citibank will lead the financing syndicate, in conjunction with Banco Santander, Spain's third-largest bank in total assets.  The financing consists of a guarantee in excess of $750 million for the tender offer, shared equally with both banks, followed by a bridge loan of up to $800 million which will be replaced by long-term financing.  Additionally, Cemex is providing $500 million of equity for the transaction.  The partners plan to widen the syndicate to other banks which have already expressed interest in participating in the financing.
    Lorenzo Zambrano, director general of Cemex, said today that "we are particularly pleased to be teamed with Citibank and Santander on this important acquisition.  Each of these banks has brought their knowledge of the local markets, as well as considerable expertise in complex financing structures, to the transaction."
    On July 7, Cemex acquired 24.9 percent of Valenciana stock held by certain large investor groups, the first step in the tender offer process.  Immediately following this action, Citibank has coordinated a tender offer (Oferta Publica de Acciones) for all the remaining shares outstanding in the marketplace.  The acquisition will be the largest ever completed in Spain.
    Banco Santander's President Emilio Botin stated in Mexico City that "this financing allows Cemex to broaden its international interests in a very competitive marketplace.  We are very excited with our role in the process."  Citibank's Vice Chairman William R. Rhodes added that "we are very pleased to play a major role at Citibank in this important international acquisition which is an integral part of Cemex's globalization program.  We are also delighted that Banco Santander is our partner in this landmark transaction."
    The acquisition of Compania Valenciana de Cementos Portland, Spain's largest cement company and the second-largest in Europe, will position Cemex as one of the world's foremost cement producers.
    Citibank has raised in excess of $5.6 billion in the international capital markets for public and private sector Mexican companies since its return to the market in 1989.
    -0-                     7/8/92
    /CONTACT:  Kenneth Campbell, 212-559-0048; or Guillermina Pilgram (Mexico City), 52-5-211-3030, both of Citibank/ CO:  Citibank N.A.; Cemex S.A.; Compania Valenciana de Cementos
     Portland; Banco Santander ST:  New York IN:  FIN SU:  FNC JL-EH -- LA030 -- 7648 07/08/92 19:32 EDT
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Publication:PR Newswire
Date:Jul 8, 1992
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