The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Latin America - Best structured borrower

Coca-Cola Femsa

It's one thing when an ambitious company like Coca-Cola Femsa, a Coke bottling operation in Mexico, buys a larger rival like Panamerican Beverages (Panamco), in the largest and most spectacular Latin M&A transaction of 2002. It's quite another thing paying for it. When Femsa announced the acquisition, it had a $1.55 billion bridge loan from JPMorgan and Morgan Stanley that it needed to replace quickly, as well as a $500 million term loan that it also wanted to refinance.

Continuing to think big, Femsa decided that it wasn't going to be satisfied with loans alone: it wanted a combination of both peso and dollar loans (one loan, in fact, had both currencies) as well as its very first venture into the domestic Mexican capital markets.

And with its debut issue of Ps4.25 billion ($408 million) of certificados bursatiles, Femsa immediately took the record for the largest ever one-day fund-raising exercise for a corporate in the Mexican market.

The bonds, which were issued at the end of April, came in three tranches: a Ps2 billion four-year floater paying 55 basis points over 28-day government paper; a Ps1.25 billion five-year floating-rate note paying 120bp over the six-month government rate; and a Ps1 billion seven-year bond issued at 100bp over the benchmark Mexican bond of the same maturity.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree