Arca Continental’s $218.6 Million Notes Offering

Galicia Abogados advised Arca Continental, S.A.B. de C.V., Scotia Inverlat Casa de Bolsa, S.A. de C.V. and HSBC Casa de Bolsa S.A. de C.V.,

Arca Continental, one of the world’s most relevant Coca-Cola bottlers, has successfully completed the issuance of Ps. 4,350 million inCertificados Bursátiles, or local notes.

The issuance consisted of two tranches, one for Ps. 1,150 million with a 7-year term at a fixed rate of 9.32%, and the other for Ps. 3,200 million with a 4-year term at a variable rate equivalent to TIIE plus 4 basis points.

Scotia Inverlat Casa de Bolsa and HSBC Casa de Bolsa S.A. acted as underwriters on the transaction.

Amid complex macroeconomic conditions with financial volatility stemming from high inflation throughout the markets, this was one of the most successful transactions in the Corporate Mexican market in recent years because of the low spread, generating excess demand nearly 3 times the amount placed.

Both issuances received Mexico’s highest credit ratings of “mxAAA” by S&P and “AAA(mex)” by Fitch Ratings.

Galicia Abogados advised Arca Continental, Scotia Inverlat Casa de Bolsa and HSBC Casa de Bolsa S.A. with a team including Guillermo Pérez Santiago (Picture), José Alexander Cortés Serrano, Emiliano Flores Juárez and Melissa Castillo Arroyo.

Involved fees earner: José Alejandro Cortés Serrano – Galicia Abogados, S.C; Emiliano Flores Juárez – Galicia Abogados, S.C; Guillermo Pérez Santiago – Galicia Abogados, S.C;

Law Firms: Galicia Abogados, S.C;

Clients: Arca Continental SAB de CV; HSBC; Scotiabank Mexico (Scotiabank Inverlat S.A.);

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Author: Ambrogio Visconti