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Bank Loans and Notes Payable
 12 Months Ended
Dec. 31, 2022
Bank Loans and Notes Payable [Abstract]  
Bank Loans and Notes Payable Bank Loans and Notes Payable
    
On December 31, (1)
                    
CarryingFairCarrying
Value atValue atValue at
(in millions of Mexican pesos)    202320242025202620272028 and ThereafterDecember 31, 2022December 31, 2022December 31, 2021
Short-term debt: 
Fixed-rate debt: 
Colombian pesos 
Bank loans Ps.— Ps.— Ps.— Ps.— Ps.— Ps.— Ps.— Ps.— Ps.311 
Interest rate — — — — — — — — 2.5 %
Argentine pesos 
Bank loans — — — — — — — — 461 
Interest rate — — — — — — — — 41.0 %
Chilean pesos 
Bank loans 1,072 — — — — — 1,072 1,072 261 
Interest rate 12.3 %— — — — — 12.3 %— 0.7 %
Uruguayan pesos 
Bank loans — — — — — — — — 184 
Interest rate — — — — — — — — 6.0 %
Guatemalan quetzal 
Bank loans — — — — — — — — 26 
Interest rate — — — — — — — — 6.3 %
Variable-rate debt: 
Mexican pesos 
Bank loans 790 — — — — — 790 790 760 
Interest rate 12.5 %— — — — — 12.5 %— 5.9 %
Total short-term debt Ps.1,862 Ps.— Ps.— Ps.— Ps.— Ps.— Ps.1,862 Ps.1,862 Ps.2,003 

(1)All interest rates shown in this table are weighted average contractual annual rates.
    
On December 31, (1)
    
Carrying Value at December 31, 2022Fair Value at December 31, 2022Carrying Value at December 31, 2021(1)
2028 and Thereafter
(in millions of Mexican pesos)20232024202520262027
Long-term debt:                  
Fixed-rate debt:                            
Euro                            
Senior unsecured notes Ps.—Ps.—Ps.—Ps.—Ps.—Ps.24,563Ps.24,563Ps.18,979Ps.27,646
Interest rate —————0.7%0.8%—0.7%
Promissory notes1,270682——1863102,4482,448—
Interest rate1.2%1.1%——2.1%2.4%1.4%——
Swiss franc
Promissory notes—482————482482—
Interest rate—0.8%————0.8%——
U.S. dollars 
Yankee bond (2)
 1————41,42841,42937,05852,255
Interest rate 3.1%————3.1%3.1%—3.1%
Bank of NY (FEMSA USD 2023) 5,808—————5,8085,7776,170
Interest rate (1)
 2.9%—————2.9%—2.9%
Bank of NY (FEMSA USD 2043) —————13,40513,40511,17814,262
Interest rate (1)
 —————4.4%4.4%—4.4%
Bank of NY (FEMSA USD 2050) —————48,17048,17034,08851,174
Interest rate (1)
 —————3.5%3.5%—3.5%
Bank loans —2,25663———2,3202,3202,352
Interest rate —5.0%6.8%———5.1%—3.6%
Mexican pesos 
Senior Notes 22L————827—827831—
Interest rate (1)
————10.9%—10.9%——
Senior Notes 22-2L—————8,4368,4368,638—
Interest rate (1)
—————9.7%9.7%——
Domestic senior notes 7,500———8,49315,44531,43829,19125,947
Interest rate 5.5%———7.9%8.3%7.5%—7.0%
Bank loans 1171101075738—429429305
Interest rate 9.8%9.6%9.6%10.9%11.7%—10.0%—5.7%
Brazilian reais 
Bank loans 3521————565694
Interest rate 7.0%7.0%————7.0%—6.2%
Chilean pesos 
Bank loans 317—————317317338
Interest rate 1.2%—————1.2%—1.2%
Uruguayan pesos 
Bank loans 976—————9769761,186
Interest rate 6.3%—————6.3%—6.7%
Subtotal Ps.16,024Ps.3,551Ps.170Ps.57Ps.9,544Ps.151,757Ps.181,104Ps.152,768Ps.181,729
(1)All interest rates shown in this table are weighted average contractual annual rates.
    
On December 31, (1)
 
Carrying Value at December 31, 2022Fair Value at December 31, 2022Carrying Value at December 31, 2021(1)
2028 and Thereafter
(in millions of Mexican pesos)20232024202520262027
Variable-rate debt:                           
Euro
Promissory notesPs.—Ps.1,115Ps.—Ps.—Ps.929Ps.516Ps.2,560Ps.2,560Ps.—
Interest rate—1.1%——1.0%1.2%1.1%——
Swiss franc
Promissory notes— 691 — — — — 691 691 — 
Interest rate — 0.8%— — — — 0.8%— — 
Mexican pesos
Domestic senior notes ——1,7272,923——4,6504,5565,650
Interest rate (1) ——10.4%10.4%——10.4%—5.4%
Bank Loans 139 213 95 78 17 — 542 542 330 
Interest rate (1) 12.9%12.8 %13.1 %13.1 %12.7 %— 12.9 %— 6.5 %
Brazilian reais 
Bank loans 12 7 6 3 — — 28 28 5 
Interest rate 9.8 %9.7 %9.8 %9.8 %— — 9.8 %— 9.0 %
Colombian pesos 
Bank loans 33 — — — — — 33 33 10 
Interest rate 5.9 %— — — — — 5.9 %— 4.5 %
Chilean pesos 
Bank loans 271 — — — — — 271 272 858 
Interest rate 4.9 %— — — — — 4.9 %— 1.8 %
Subtotal Ps.455 Ps.2,026 Ps.1,828 Ps.3,004 Ps.946 Ps.516 Ps.8,775 Ps.8,682 Ps.6,853 
Total long-term debt Ps.16,479 Ps.5,577 Ps.1,998 Ps.3,061 Ps.10,490 Ps.152,273 Ps.189,879 Ps.161,450 Ps.188,582 
Current portion of long-term debt — — — — — — (16,479)(2,637)
Ps.191,741 Ps.190,585 
(1)All interest rates shown in this table are weighted average contractual annual rates.

(2)Interest rate derivatives that have been designated as fair value hedge relationships have been used by Coca-Cola FEMSA to mitigate the volatility in the fair value of existing financing instruments due to changes in floating interest rate benchmarks. Gains and losses on these instruments are recorded in “Market value (gain) loss on financial instruments” in the period in which they occur. During 2022, we are applying IFRS 9 to the hedged portion of the Senior Notes of US$ 705, which are linked to an interest rate swap. Starting in this year, the hedging gain or loss will adjust the carrying amount of the hedged item and will be recognized in P&L under “Market value (gain) loss in financial instruments”. As of December 31, 2022, the Company is recording a gain of Ps. 1,647 in the income statement under “Market value (gain) loss in financial instruments”, which offsets the loss on interest rate derivatives used to hedge debt denominated in USD, that resulted from increases in interest rates.
2028 andTotalTotal 
Hedging Derivative Financial Instruments (1)20232024202520262027Thereafter20222021 
 (notional amounts in millions of Mexican pesos)
`
Cross-currency swaps:                                                
U.S. dollars to Mexican pesos                        
Fixed to a variable (3) Ps.11,403Ps.—Ps.—Ps.—Ps.—3,679Ps.15,082Ps.11,403
Interest pay rate 7.0%————8.9%7.4%7.0%
Interest receive rate 4.0%————3.6%3.9%4.0%
Fixed to fixed 1,743————10,00011,74324,235
Interest pay rate 8.2%————8.9%8.8%8.4%
Interest receive rate 3.3%————3.5%3.5%3.5%
Fixed to fixed (2) 
Interest pay rate —————9.4%9.4%9.4%
Interest receive rate—————4.4%4.4%4.4%
U.S. dollars to Euro
Fixed to fixed————8,73513,39522,13015,078
Interest pay rate————3.1%1.9%2.4%1.9%
Interest receive rate————3.5%3.5%3.5%3.5%
U.S. dollars to Brazilian reais
Fixed to variable———4,8401,936—6,7775,146
Interest pay rate———10.7%2.8%—11.5%9.9%
Interest receive rate———1.9%2.8%—2.1%2.1%
Fixed to fixed9,294—————9,2949,880
Interest pay rate11.5%—————11.5%9.5%
Interest receive rate3.2%—————3.2%3.9%
Colombian pesos
Fixed to fixed345———1,131—1,476—
Interest pay rate8.5%———6.3%—6.8%—
Interest receive rate2.2%———2.8%—2.6%—
Interest rate swaps:
Fixed to variable rate:———————6,175
Interest pay rate———————0.4%
Interest receive rate———————1.9%
Variable to a fixed rate:6792,227————2,9053,225
Interest pay rate5.8%3.6%————4.1%4.2%
Interest receive rate1.8%1.9%————1.9%1.9%
Variable to fixed rate (3):
Interest pay rate7.2%—————7.2%7.2%
Interest receive rate7.0%—————7.0%7.0%
(1)All interest rates shown in this table are weighted average contractual annual rates.

(2)Cross Currency swaps which covers U.S. dollars to Mexican pesos with a notional of Ps.8,869, that have a starting date in 2023; receiving a fixed rate of 4.4% and pay a fixed rate of 9.4%.

(3)Interest rate swaps with a notional amount of Ps.11,403 that receive a variable rate of 7.0% and pay a fixed rate of 7.2%; joined with a cross-currency swap, which covers U.S. dollars to Mexican pesos, that receives a fixed rate of 4.0% and pay a variable rate of 7.0%.
For the years ended December 31, 2022, 2021 and 2020, the interest expense is comprised as follows:
202220212020
Interest on debts and borrowingsPs.8,129 Ps.9,356 Ps.10,789 
Finance charges for employee benefits, net553 476 456 
Derivative instruments1,795 1,970 1,428 
Finance operating charges48 18 (231)
Finance charges payable for leases5,789 5,118 5,074 
Ps.16,314 Ps.16,938 Ps.17,516 
    

On March 14, 2016, the Company issued long-term debt on the Irish Stock Exchange (“ISE”) in the amount of €.1,000 million, which was made up of senior notes with a maturity of 7 years, a fixed interest rate of 1.75%, and a spread of 155 basis points over the relevant benchmark mid-swap, for a total yield of 1.824%. The Company designated this non-derivative financial liability as a hedge on the net investment in Heineken. These senior notes were prepaid in May 2021, with a settlement price of €. 1,042 million, which includes accrued expenses. The difference between the settlement price and the book value of the debt at the date of prepayment was recognized in the income statement. As a result of this transaction, the net investment hedge was discontinued without any effects in the income statement. For the year ended December 31, 2021, up to the prepayment date, a foreign exchange gain, net of tax, had been recognized as part of the exchange differences on translation of foreign operations within the cumulative other comprehensive income of Ps. 232. The foreign exchange effects accumulated up to the prepayment date of the senior notes will be recognized in the income statement with the corresponding currency translation effect when a partial or total disposal of Heineken shares occurs.

On January 16, 2020, the Company issued U.S. $1,500 million 3.500% Senior Unsecured Notes at an annual rate of 130 basis points over the relevant benchmark. In addition, on February 12, 2020, the Company placed a re-tap to its US-denominated SEC-registered Senior Unsecured Notes due 2050 and issued U.S. $300 million 3.500% at an annual rate of 137.5 basis points over the relevant benchmark, raising the total outstanding balance to U.S. $1,800 million with an implied yield to maturity of 3.577%. In June 2020, the Company issued U.S. $700 million 3.500% Senior Unsecured Notes due 2050 with an implicit weighted performance of 3.358%. The Company has designated a portion of these non-derivative financial liabilities as a hedge on the net investment. For the year ended December 31, 2022, a foreign exchange gain, net of tax, has been recognized as part of the income on hedge of net investments in foreign operations within the cumulative other comprehensive income of Ps. 1,498.
In March 2020, we entered into certain short-term bank loans in Mexican pesos for an aggregate principal amount of Ps.15,000 million.
In April 2021, the Company issued €. 500 and €. 700 million in debt certificates at a fixed rate of 1.0%, maturing in 2033 and 0.5% maturing in 2028, respectively. On May 21, 2021, this non-derivative financial liability was designated as a hedge on the net investment in Heineken. For the year ended December 31, 2022, a foreign exchange gain, net of tax, has been recognized as part of the income on the hedge of net investments in foreign operations within the cumulative other comprehensive income of Ps. 2,179.
In November 2022, the Company issued $8,446 millions and $827 million in debt certificates at a fixed rate of 9.65%, maturing in 2032 and a floating rate of TIIE28 + 0.10%, maturing in 2027, respectively. In accordance with the terms of the Bonds, they are linked to FEMSA's Sustainability-Linked Bond Framework, the which was adopted and published by the Company in relation to the issuance of the Sustainability-Linked Bond denominated in Euros issued in 2021 in the international capital market, for €700 million in senior notes maturing in 2028, and €500 million in senior notes maturing in 2033.

Coca-Cola FEMSA has the following bonds:
a)registered with the Mexican stock exchange:
i)     Ps. 7,500 (nominal value), maturing in 2023 and a fixed interest rate of 5.46%; ii) Ps. 8,500 (nominal value) with a maturity in 2027 and a fixed interest rate of 7.87%; iii) Ps. 1,727 (nominal value) with a maturity date in 2025 and a floating interest rate of TIIE + 0.08%; iv) Ps. 3,000 (nominal amount) with a maturity date in 2028 and fixed interest rate of 7.35%, v) Ps. 6,965 (nominal amount) on a Sustaninability-Linked Bond (SLB) with a maturity date in 2028 and fixed rate of 7.36%, and vi) Ps. 2,435 (nominal amount) on an SLB with a maturity date in 2026 and floating rate of TIIE + 0.05%, vii)
Ps.5,500 (nominal amount) with a maturity date in 2029 and a fixed rate of 9.95%, viii) Ps.$500 (nominal amount) with a maturity date in 2026 and a floating rate of TIIE + 0.05%.

b)registered with the New York Stock Exchange:
i)    Senior notes of U.S. $1,041 with a fixed interest rate of 2.75% and maturity on January 22, 2030; ii) Senior notes of US. $ 705 with interest at a fixed rate of 1.85% and maturity date on September 1, 2032 and iii) Senior notes of US. $ 489 with interest at a fixed rate of 5.25% and maturity date on November 26, 2043.

The Senior Notes are guaranteed by Coca-Cola FEMSA subsidiaries: Propimex, S. de R.L. de C.V., Comercializadora La Pureza de Bebidas, S. de R.L. de C.V., Controladora Interamericana de Bebidas, S. de R.L. de C.V., Grupo Embotellador Cimsa, S. de R.L. de C.V., Refrescos Victoria del Centro, S. de R.L. de C.V., Distribuidora y Manufacturera del Valle de Mexico, S. de R.L. de C.V (as successor guarantor of Servicios Integrados Inmuebles del Golfo, S. de R.L. de C.V.) and Yoli de Acapulco, S. de R.L. de C.V. (the “Guarantors”).
During 2020, Coca-Cola FEMSA obtained (and paid off) bank loans to build enhance liquidity to the COVID-19 pandemic: in Mexico for an amount of Ps. 15,650 at a weighted interest rate of 6.04%, in Argentina and Colombia for an amount of Ps. 1,184. Similarly, on January 22, 2020, Coca-Cola FEMSA prepaid senior notes during the same year in Mexico of US. $900, and on February 18, 2020, Coca-Cola FEMSA paid the total balance of its senior notes in of US. $ 500.
In addition, Coca-Cola FEMSA entered into bank loans in Argentine and Uruguayan peso with some banks for Ps. 711 and Ps. 759, respectively.    
During the third quarter of 2021, Coca-Cola FEMSA issued the first SLB in the Mexican market for a total of Ps. 9,400 in the modality of communicating vessels with maturities in 2025 and 2026 and with those resources prepaid bilateral loans denominated in Mexican pesos of: i) Ps. 3,760 with a maturity date of February 2025 and ii) Ps. 5,640 with an expiration date of August 2026. The bond’s interest rate depends on us achieving key performance indicators, and in the event that such indicators are not met by the dates established in the offering documents, (2024 and 2026), the interest rate on the bonds will increase by 25 basis points.

Additionally, during 2021, Coca-Cola FEMSA obtained bank loans in local currency in Argentina and Uruguay for Ps. 461 and Ps. 1,114 (nominal amounts) respectively.

During the fourth quarter of 2022, Coca-Cola FEMSA repurchased a portion of the following notes registered with the SEC i) Senior notes of US. $ 209 with maturity date on January 2030, and ii) Senior notes of US. $111 with maturity date on November 2043, representing a net savings of Ps. 408 (nominal amounts).

Additionally during 2022, Coca-Cola FEMSA issued a social and sustainable bond in the Mexican Market on a dual-tranche transaction for an amount of Ps. 6,000.

The Company has financing from different institutions under agreements that stipulate different restrictions and covenants, which mainly consist of maximum levels of leverage and capitalization as well as minimum consolidated net worth and debt and interest coverage ratios. As of the date of these consolidated financial statements, the Company complied with all restrictions and covenants contained in its financing agreements.
19.1 Reconciliation of liabilities arising from financing activities
 Carrying Carrying
 Value at Value at
 January 1, 2022Cash FlowsNon-cash effects December 31, 2022
            Foreign    
AcquisitionNew leasesExchange
Others (1)
Income
(Loss)
Bank loans Ps.7,580Ps.(415)Ps.—Ps.—Ps.(78)Ps.(375)Ps.6,712
Notes payable 183,0056,7186,181—(8,957)(1,919)185,029
Total liabilities from financing activities 190,5856,3036,181—(9,034)(2,294)191,741
Lease liabilities 62,355(15,108)21,93310,686(356)13,80793,317
Total financing activities Ps.252,940Ps.(8,805)Ps.28,114Ps.10,686Ps.(9,390)Ps.11,513Ps.285,058
(1) Includes mainly remeasurements of leases, and amortization of transaction costs.

Carrying
Value atCarrying
JanuaryValue at
1, 2021Cash FlowsNon-cash effectsDecember 31, 2021
Foreign
AcquisitionNew leasesExchangeOthers (1)
Income
(Loss)
Bank loansPs.19,430Ps.(11,015)Ps.—Ps.—Ps.(939)Ps.104Ps.7,580
Notes payable169,23512,156——1,614—183,005
Total liabilities from financing activities188,6651,141——675104190,585
Lease liabilities58,308(12,325)1,5407,871(798)7,75962,355
Total financing activitiesPs.246,973Ps.(11,184)Ps.1,540Ps.7,871Ps.(123)Ps.7,863Ps.252,940
(1)Includes mainly remeasurements of leases, and amortization of transaction costs.

Carrying
Value atCarrying
JanuaryValue at
1, 2020Cash FlowsNon-cash effectsDecember 31, 2020
Foreign
AcquisitionNew leasesExchangeOthers
Income
(Loss)
Bank loansPs.20,807Ps.(1,286)Ps.—Ps.—Ps.221Ps.(312)Ps.19,430
Notes payable97,14467,379——4,813(101)169,235
Total liabilities from financing activities117,95166,093——5,034(413)188,665
Lease liabilities54,679(9,810)1,7657,982(584)4,27658,308
Total liabilities from financing activities172,63056,2831,7657,9824,4503,863246,973