Lafarge sets size 8-year bond at 350 mln stg -IFR

LONDON May 19 (Reuters) - French cement maker Lafarge (LAFP.PA) set final terms on a planned eight-year sterling bond at a size of 350 million pounds ($542 million) and final guidance for a coupon of 8.75 percent, IFR reported on Tuesday.

This is Lafarge's second bond issue in two days, following the sale of a 1 billion euro ($1.4 billion) five-year bond on Monday.

Barclays, HSBC and Royal Bank of Scotland have been named to manage the sterling issue, which is to include a 125 basis point step-up in its coupon in the event of a downgrade to junk, said IFR Markets, a Thomson Reuters online news and market analysis service.

Lafarge is rated BBB- by both Standard & Poor's and Fitch Ratings and Baa3 by Moody's Investors Service. (Reporting by Jane Baird; Editing by Dan Lalor) ($1 = 0.6454 pound) ($1 = 0.7337 euro)