Mexican Brewer Tees Up MXP Issue

Mexico’s Femsa has scheduled the sale of up to MXP6bn in domestic bonds for July 8, according to bankers managing the transaction. The terms remain to be set, but the beverage company can pick from a floating tranche, a fixed-rate peso tranche and a fixed-rate tranche denominated in UDIs. BBVA and Santander are managing the sale. As in a deal from fellow blue-chip Bimbo earlier this month, the issuer has set a high limit and left multiple options to get the best price from a recovering market. On June 10, AA rated Bimbo got TIIE plus 160bp on MXP5bn in 2014 floaters, 6.05% on a MXP3bn 2016 UDI tranche and 10.60% on 2016 fixed notes. S&P gives the new Femsa issue a AAA national rating, while Moody’s recently lowered Femsa’s corporate rating to Aa1 from Aaa. The brewer last visited the domestic market in May 2008, selling MXP1.5bn in 2011 bonds at 2bp through 28-day TIIE via HSBC.