UPDATE 1-Cemex says to issue at least $225 mln in securities

* Cemex plans to raise at least 3 bln pesos ($225 mln)

* Issue is convertible in up to 400 mln shares (Adds terms of deal, details from statement)

MONTERREY, Mexico, Nov 4 (Reuters) - Mexico's Cemex, the world's No. 3 cement maker, said on Wednesday it plans to issue at least 3 billion pesos ($225 million) in convertible securities in Mexico as part of its debt refinancing.

Cemex (CX.N) (CMXCPO.MX) convinced its creditors to refinance $15 billion in bank and bondholder debt until 2014, but has agreed to sell assets and raise capital via equity and bond issues.

Under the terms of the deal, Cemex will issue 10-year commercial paper that will be converted into shares.

Cemex did not give a date for the issue, which must come after the Mexican stock exchange approves the deal. The company says it aims to use the new paper to replace outstanding debt in Mexico.

The company said it aims to attract Mexican pension funds.

"The transaction is expected to be launched for a minimum amount of securities of 3.0 billion Mexican pesos that will be mandatorily convertible into approximately 114.5 million CPOs," said Cemex in a statement. CPOs are shares on the Mexican bourse.

"However, CEMEX may issue securities mandatorily convertible into a maximum amount of 400 million CPOs," the statement said.

Cemex became the top cement company in the United States in 2007 after purchasing Australia's Rinker for $16 billion, but the deal saddled Cemex with a huge amount of debt just as the U.S. housing crisis broke, sending its sales sharply lower.

Chief Executive Lorenzo Zambrano told Reuters on Friday the company would pay debt as it agreed in August, but he said Cemex would also seek to extend maturities beyond 2014 by possibly issuing another five- to 10-year bond.

Cemex is betting on a recovery in the U.S. housing market by the middle of next year to help generate more cash and stem slumping cement volumes as the company recovers from the worst crisis in its century-long history. ($1=13.30 pesos) (Reporting by Robin Emmott; editing by Carol Bishopric)