Embotelladora Andina S.A. (NYSE: AKO.B) placed Series J bonds for 2,500,000 Unidades de Fomento in the Chilean local market on 6 August 2026, at an interest rate of 2.95% and an annual coupon rate of 3.10%, maturing on September 30, 2030. The bottler reported the placement to the Comision para el Mercado Financiero as a material event and furnished the same letter to the United States Securities and Exchange Commission on Form 6-K.

The notice was filed under Article 9 and the second paragraph of Article 10 of Law No. 18,045 on the Securities Market, together with General Rule No. 30 of the Commission. The instruments are dematerialised bearer bonds carrying the ticker symbol BANDI-J and were drawn against the bond line registered in the Commission’s Securities Registry under number 972. Chief Legal Officer Jaime Cohen Arancibia signed the letter in Santiago.

Proceeds will be used to refinance liabilities, fund investments and for other corporate purposes of the company and its subsidiaries, on the terms set out in the issuance documents. The company added that it intends an amount equivalent to the proceeds to be allocated, in whole or in part, to refinance or finance new or existing green projects eligible under its Coca-Cola Andina Green Bond Framework and Sustainable Bond Framework.

What a UF bond commits the issuer to

The Unidad de Fomento is an inflation indexed unit of account. Its peso value is reset daily and published by Chile’s Servicio de Impuestos Internos; on 6 August 2026 the unit stood at 40.844,79 pesos, and it had held that level since the start of the month before rising through the second half of August. A borrower issuing in UF fixes a real coupon and lets the principal follow consumer prices, which is why the 3.10% coupon on Series J sits far below what a peso denominated instrument of the same maturity would carry.

That indexation is already visible in the bottler’s accounts. In the second quarter of 2026 the results by adjustment units and exchange rate differences line moved from a loss of CLP 2,448 million to a loss of CLP 10,707 million, which the company attributed primarily to higher inflation in the quarter, 2.46% against 0.96% a year earlier, adjusting debt denominated in UF. The Series J placement adds to that exposure rather than reducing it.

Embotelladora Andina is registered with the Comision para el Mercado Financiero under RUT 91.144.000-8, with a domicile at Avenida Miraflores 9153 in Renca, Santiago, and its registration is current.

The balance sheet behind the issue

The bottler published second quarter results a week before the placement. Consolidated sales volume for the quarter reached 213.7 million unit cases, up 3.0%, with transactions of 1,188.4 million, up 4.7%. Accumulated volume reached 465.3 million unit cases, a 1.5% increase, on accumulated transactions of 2,520.9 million.

Consolidated net sales were CLP 820,087 million for the quarter, up 11.1%, and CLP 1,744,445 million for the half, up 8.2%. Operating income reached CLP 93,235 million in the quarter, up 16.7%, and CLP 242,221 million for the half, up 15.0%. Adjusted EBITDA rose 17.0% to CLP 139,550 million for the quarter, with a margin of 17.0% and an expansion of 85 basis points, and reached CLP 333,586 million for the half, up 15.6%, with a margin of 19.1%.

Net income attributable to the owners of the controller was CLP 37,260 million for the quarter, up 0.1%, and CLP 134,902 million for the half, up 18.8%. The gap between the two growth rates comes from the non-operating lines: net financial income and expense recorded an expense of CLP 12,185 million against CLP 12,649 million, the equity method result improved from CLP 139 million to CLP 842 million, other income and expenses moved from a loss of CLP 6,098 million to a loss of CLP 6,961 million, and income tax rose from CLP 22,085 million to CLP 26,782 million.

Leverage was falling into the issue. The debt to equity ratio stood at 0.5 times at the end of June 2026, a 13.8% decrease from December 2025, on a 13.7% increase in total equity and a 2.0% decrease in net financial debt. Net financial debt to adjusted EBITDA stood at 1.1 times, down 11.0%, and financial expense coverage reached 15.0 times, up 23.5%, as 12 month adjusted EBITDA grew 10.1% and 12 month net financial expenses fell 10.9%.

Analysis: a four year UF denominated issue set against the disclosed leverage ratios

The company reported net financial debt at 1.1 times adjusted EBITDA and financial expense coverage of 15.0 times before the placement, and the stated use of proceeds is refinancing, investment and general corporate purposes. The notice does not identify a maturity that the issue was raised to meet. The four year tenor to September 30, 2030 and the 2.95% placement rate against a 3.10% coupon indicate the bonds priced slightly above par in real terms.

The green label has a defined scope. The company said it intends an amount equivalent to the proceeds to be allocated, in whole or in part, to eligible green projects under its own framework. That is an intention expressed against a framework the issuer controls, not a covenant, and the filing sets no reporting or verification obligation. The material event notice also does not disclose the identity of investors, the order book, or how the placement compares with the earlier series drawn on line 972.

The more consequential number for a holder is the inflation print. Andina’s second quarter disclosure shows quarterly inflation of 2.46% flowing straight into a CLP 10,707 million adjustment loss on UF debt, up from CLP 2,448 million when inflation ran at 0.96%. Adding 2,500,000 UF of principal widens that channel. The offset is that the bottler’s revenues are also priced in an inflating currency: net sales grew 11.1% in the quarter while volume grew 3.0%, so the price and mix component of revenue is carrying most of the top line.

Comparison with a year earlier shows why the balance sheet could absorb it. In the second quarter of 2025 the company reported sales volume of 207.5 million unit cases, net sales of CLP 738,154 million and adjusted EBITDA of CLP 119,323 million with a 16.2% margin. Margins have widened since, and the quarterly EBITDA base is roughly a sixth larger, which is the substantive change between the two funding positions.