Mexico's Femsa sells Ps. 2.5 billion notes

By Reshmi Basu

New York, July 7 - Formento Economico Mexicano, SA de CV said it sold Ps. 2.5 billion notes in the local market.

The issuance was broken into two tranches: Ps. 1.25 billion notes priced at 80 basis points over the Cetes rate (91-day Treasuries) and Ps. 1.25 billion four-year notes priced at 45 basis points over TIIE (28-day interbank rate).

The Latin beverage maker said it was taking advantage of the high liquidity in the Mexican debt capital markets. The issuance also received the maximum credit rating by all three credit agencies.

"Coming out of a period of high volatility in the fixed income market, both tranches set aggressive benchmarks and signaled the effective reopening of the Mexican bond market," said the Monterrey-based company in a news release.

Proceeds will be used to buy back a 30% stake in Femsa's beer division for $1.245 billion from Interbrew.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.