Colombian brewery Bavaria has announced major plans to invest $1 billion (€1bn) over the next few years to modernise and expand its current production facilities.
The company confirmed it has approved the issuance of 8 milllion shares, worth $30 million, and corresponding to a 3.15 per cent equity in the company, to be acquired by the International Finance Corporation.
Bavaria's investment spree has been designed to prepare the company for the free trade area of the Americas. From the planned investment Pesos$700,000 were already in place through the issuance of bonds, US$300 million is to come directly or indirectly from the IFC, and the remainder from the cash flow of Bavaria.
With the investment monies the plan is to modernise the Colombian plants at Bogota, Medellin, Calli, Bucaramanga, and Barranquilla, and also other units in Ecuador and Panama.
Bavaria is also eyeing the acquisition of the Panama brewery Cervezas del Baru.