Femsa’s €1.2 Billion Notes Offering

Cleary Gottlieb Steen & Hamilton LLP represented Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”), while Skadden, Arps, Slate, Meagher & Flom LLP represented the underwriters in the offering.

Fomento Economico Mexicano, S.A.B. de C.V. executed its offerings in the international markets of €700,000,000  0.500% senior notes due 2028 and €500,000,000  1.000% senior notes due 2033. This is the first sustainability linked bond by a Mexican issuer.

The proceeds from the issuance will be used to redeem FEMSA’s €1 billion 1.75% senior notes due 2023 and the remainder, if any, will be used for general corporate purposes. BofA, HSBC and JPM acted as underwriters for the offering.

FEMSA is a leading Mexican company that participates in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world; in the retail industry through FEMSA Comercio, operating OXXO, the largest- and fastest-growing chain of small-format stores in Latin America; and in the beer industry, as a shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries.

The Cleary teamfor FEMSA included partner Duane McLaughlin (Picture), associate Jose Andres de Saro, and law clerk Amanda Mitchell. Partner Jason Factor, senior attorney David Stewart Fisher, associate Michael Sims, and law clerk Eugene Wei-En Woo provided tax advice. All lawyers are based in New York.

The Skadden team advising the underwriters included Capital Markets partner Alejandro Gonzalez and associates Alejandro Ascencio,Claudia Garnica (Houston) and Patrick Tsitsaros (London); Tax partner Alec Jarvis and associates Nazmiye Gokcebay and Cameron Williamson. All attorneys are located in New York unless otherwise indicated.  

Involved fees earner: Jose Andres de Saro – Cleary Gottlieb Steen & Hamilton; Jason Factor – Cleary Gottlieb Steen & Hamilton; Duane McLaughlin – Cleary Gottlieb Steen & Hamilton; Michael Sims – Cleary Gottlieb Steen & Hamilton; David Stewart Fisher – Cleary Gottlieb Steen & Hamilton; Alejandro Ascencio – Skadden Arps Slate Meager & Flom; Claudia Garnica – Skadden Arps Slate Meager & Flom; Nazmiye Gokcebay – Skadden Arps Slate Meager & Flom; Alejandro Gonzalez Lazzeri – Skadden Arps Slate Meager & Flom; Alec Jarvis – Skadden Arps Slate Meager & Flom; Patrick Tsitsaros – Skadden Arps Slate Meager & Flom; Cameron Williamson – Skadden Arps Slate Meager & Flom;

Law Firms: Cleary Gottlieb Steen & Hamilton; Skadden Arps Slate Meager & Flom;

Clients: Bank of America Securities; Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA); HSBC; JP Morgan;

Author: Martina Bellini