A blend of whiskey and tequila

Mexico City

MIXING tequila and Irish whiskey appears to go down well with bondholders.

JB & Cia, the 250-year-old Mexican owner of Jose Cuervo, sold US$500 million of bonds this week to finance its acquisition of Northern Ireland's Bushmills from London-based beverage conglomerate Diageo Plc. The bonds due in 2025 were sold to yield 3.87 per cent - well below the average 4.31 per cent for similarly-rated emerging-market bonds, according to data compiled by Bloomberg.

The family-owned JB is trying to reduce its dependence on tequila sales, a risk that Fitch Ratings said last week was a threat to the company's credit rating. Adding to the allure of the bond sale, it was just the fourth by a Mexican company this year, filling a gap for investors looking for ways to invest in the Latin American country's deb…