Coca-Cola FEMSA, the soft drinks arm of Mexican drinks group FEMSA, has raised US$500m by selling 10-year bonds in US capital markets.

The group had originally intended to raise $400m, but it expanded the offering due to high demand from investors.

"The proceeds will be used for debt refinancing and general corporate purposes," said the firm today (3 February).

Its parent group, Fomento Economico Mexicano SAB (FEMSA), last month announced that it has agreed to sell its beer business, FEMSA Cerveza, to Heineken in return for a 20% stake in the Netherlands-based brewer.

Following the deal, FEMSA said it would look for acquisitions in soft drinks bottling and distribution.

"We would like to use the balance sheet power we are getting through this transaction, as well as free cash flow generated, in order to capitalise on those opportunities that we are permanently pursuing all the time," said FEMSA chief financial officer Javier Astaburuaga Sanjines.

FEMSA owns a 54% stake in Coca-Cola FEMSA. The Coca-Cola Co has a 31.6% stake.