Coca-Cola Femsa, the Mexican soft drink bottler, has never had much need for the capital markets because of its ability to generate vast amounts of cash. The Monterrey-based company had annual revenues of around $1.5 billion and had not issued a bond since the early 1990s.
In 2003, Femsa needed to assemble billions of dollars to take over Panamco, its larger competitor, in a $3.65 billion acquisition (see "Slow and Steady Won the Race"). A key part of the financing Femsa marshaled to buy Panamco came from a MP4.25 billion ($395 million) local market issue, the largest single-day fundraising exercising a company has ever undertaken in the Mexican market. The three-tranche bond was enormously successful and paved the way for the company to return to the market three months later for an even bigger issue. LatinFinance awards Coke Femsa's certificado bursátil program as the Corporate Local...
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