Bavaria has authorised a five-year syndicated loan of up to US$250m. The Colombian brewer will use the funds for liability management purposes, the company said yesterday (25 May).

Speaking to Dow Jones Newswires, head of investor relations at Bavaria, Carlos German Quintero, said that the proceeds will be used to reduce risk associated with foreign exchange volatility and to improve its credit profile. The brewer has around US$443m in debt amortisation due this year, Dow Jones noted.

At the end of March, Bavaria had US$2.086bn in debt outstanding.

Bavaria has been the subject of takeover speculation for most of this year, with SABMiller rumoured to be the frontrunner to buy the South American brewer.