FEMSA issues CHF 300 million in Swiss bonds as Saba Capital buys Mexico Fund shares

FEMSA, the Mexican conglomerate operating in retail and beverages, has successfully issued CHF 300 million in 5-year senior unsecured bonds in the Swiss bond market. The bonds will be listed on the SIX Swiss Exchange and carry an annual interest rate of 107 basis points over the relevant benchmark rate, resulting in a 1.73% yield. The issuance received credit ratings of BBB+ from S&P Global Ratings and A from Fitch Ratings. The company intends to use the proceeds for general corporate purposes to improve its cost of debt and increase financial flexibility.

Separately, Saba Capital Management, L.P. has continued to accumulate shares in the Mexico Fund (NYSE: MXF). On September 21, the major shareholder purchased 2,034 shares at an average price of $21.03, bringing its total ownership to 2,312,612 shares valued at approximately $48.6 million. This follows several other purchases made by the firm in mid-September.