FEMSA has successfully completed its equity offering. The Mexican soft drinks and beer producer expects to net proceeds of US$700m which are being used to repay bridge loans incurred to purchase the 30% of its subsidiary, FEMSA Cerveza, in August last year and to repay other indebtedness.

A total of 80.5m BD Units, equivalent to 8.05m American Depositary Shares (ADSs) were sold in the offering, with international investors acquiring 80% of the available BD Units and Mexican investors acquiring the remaining 20%.

Concurrently, FEMSA sold a total of 52.78m B Units in Mexico at the equivalent of the public offering price per BD Unit. These amounts of new units include the over-allotment option exercised by the underwriters.

In a statement issued yesterday (5 June), Jose Antonio Fernandez, chairman and CEO of FEMSA, said: "We are very pleased with the successful conclusion of our equity offering. Today, our balance sheet is strong and we have the required financial flexibility to continue executing our growth strategy.

"Just as importantly, the strong demand we saw during the offering demonstrates that investors trust our strategy and our ability to execute, and we will continue working hard every day to create and deliver value for them."