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
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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