What was issued

FEMSA issued a 5-year bond in the Swiss market, and the issue size was CHF 300 million.

The bond carries a yield of 1.73% and pays 107 basis points over the relevant benchmark rate.

Highlights

  • FEMSA issued a CHF 300 million bond with a 5-year term.
  • The bond is listed on the SIX Swiss Exchange.
  • Fitch rated the bond A and S&P Global Ratings rated it BBB+.

What the ratings and listing tell you

The bond is listed on the SIX Swiss Exchange, which is the venue named in the supplied facts.

Fitch Ratings assigned FEMSA’s bond an A rating, while S&P Global Ratings assigned BBB+.

Why the use of proceeds matters

FEMSA said the proceeds will go to general corporate purposes, improving its cost of debt and increasing financial flexibility.

For a retail trader or newer investor, that means the bond was not described as funding one narrow project in the facts supplied, but as part of a broader financing move by FEMSA.