Coca-Cola FEMSA announced on Tuesday that it placed a green bond for $ 705 million at 1.850% with maturity in 2032.
The company is the world’s largest franchise bottler of The Coca-Cola Company by sales volume.
In a statement, Coca-Cola FEMSA informed that it intends to allocate an amount equal to the net proceeds of this offering to finance or refinance eligible green projects.
The company’s total indebtedness was 69,977 million pesos as of December 31, 2019, compared to 81,805 million as of December 31, 2018.
Coca-Cola FEMSA’s main source of liquidity is cash generated by operations. A large majority of its sales are made in cash and the rest in short-term credits.
Traditionally, the company has been able to rely on cash generated from operations to fund its working capital requirements and capital expenditures.
In general, the company’s working capital benefits from the fact that the majority of its sales are made in cash, while it generally pays its suppliers on credit. He has used a combination of loans from Mexican and international banks and bond issues in the Mexican and international capital markets.
The company produces and distributes trademarked beverages from The Coca-Cola Company, offering a broad portfolio of 129 brands to a population of more than 261 million.
With more than 80,000 employees, Coca-Cola FEMSA markets and sells approximately 3.4 billion unit cases through nearly 2 million points of sale per year.
With 49 manufacturing plants and 268 distribution centers, the company affirms that it is committed to generating economic, social and environmental value for all its stakeholders in the value chain.
The company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and S & P/BMV Total Mexico ESG Index, among others.
Its operations cover franchise territories in Mexico, Brazil, Guatemala, Colombia and Argentina and, at the national level, in Costa Rica, Nicaragua, Panama, Uruguay and Venezuela through its investment in KOF Venezuela.