As part of its effort to finance its planned acquisition of Panamerican Beverages, Mexico’s Coca-Cola Femsa has issued 4.25 billion pesos (US$408m) in local debt.
The deal will create the world’s number two Coke bottler.
In a statement from Mexico’s stock exchange, Femsa was said to have sold three tranches of “certificados bursatiles” – certificates that allow Mexican companies to issue peso-denominated paper that can be traded on the local securities exchange – as part of plans to issue up to 10 billion pesos in local currency debt to buy Panamco.
Femsa is also planning to issue dollar debt for the acquisition of Miami-based Panamco.
Analysts have ropundly agreed with Femsa’s plans to issue peso debt alongside dollar debt to buy Panamco because the merged company will have a large chunk of its revenues in Mexican pesos and therefore the local debt forms a natural hedge against exchange rate fluctuations.

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