SUBSCRIBE

Breaking News on Food & Beverage Development - EuropeUS edition | Asian edition

News > Market Trends

Read more breaking news

 

 

AmBev raises funds for debts

27-Nov-2001

Brazilian beverage leader AmBev, the world's fourth-largest brewer, said on Monday it would issue $500 million (568 million euros) in bonds to pay off short-term debt and make other investments.



AmBev's operating subsidiary Companhia Brasileira de Bebidas (CBB) will place $500 million (568 million euros) in fixed-rate notes that it said would be insured against ``political risk'', a term analysts reckoned meant the company would include guarantees that would secure it better interest rates.



AmBev added in a statement that the ``tenor'' of the issue would depend on market conditions. The funds will be used to repay short-term debt and go toward capital expenditures and other general purposes.



The news deflated some expectations that AmBev was gearing up to make a big acquisition abroad after it announced on Friday that its board had approved a debt issue of up to $1 billion (1.14 billion euros) with an average maturity of up to 10 years. Some analysts had speculated that AmBev could seek to acquire No. 2 U.S. brewer Miller Brewing from Philip Morris Cos. Inc.

Key Industry Events

Live Supplier Webinars

Improve your RTD tea and coffee business
Flavourtech

On demand Supplier Webinars

Rethinking Fat Forum
William Reed Business Media
All supplier webinars