Arca Continental Increases Shelf

Mexico’s Arca Continental, previously Embotelladoras Arca, has increased the size of its local debt shelf. The 5-year program from 2008 has been increased by MXP5bn ($422m) to MXP16bn via HSBC. The head of IR, Ulises Fernandez, in May said that in Q3 of 2011 the company plans to issue MXP5bn, though the exact timing has not yet been defined. Proceeds will partly be used to pay for the transaction costs related to the $2.3bn merger of Arca and (Grupo) Continental, with the rest being used for general corporate purposes including investment expenses and working capital. It is the only issuance the company is planning this year, says Fernandez. The bottling company last came to the domestic market in November 2010, when it priced an MXP3.5bn fixed and floating rate deal via HSBC.