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.