América Móvil has created a new debt capital markets structure to enable it to achieve sufficient liquidity for its future peso-denominated financing needs. At the end of November the Mexican telecoms company raised Ps15 billion ($1.1 billion) in 10-year bonds that are registered with both the SEC and Mexico’s regulator, the CNBV, and will trade on a fungible basis in the domestic and international markets.
The securities, known as titulos de crédito extranjeros, attracted an order book of Ps50 billion and were sold to 122 accounts globally.
“América Móvil’s aim was to create an alternative to the mbono [Mexican government bonds denominated in pesos, of which about 60% are held by international investors],” says Carlos Mendoza, director and co-head of DCM Latin America at Deutsche Bank in New York. “The biggest complaint that investors have about buying local-currency bonds from corporates is secondary market liquidity when compared, for example, with mbonos. América Móvil’s global Mexican peso bond enhances the liquidity typically associated with corporates as for the first time there is a corporate note that can be purchased by both international and local investors without any structural or legal limitations.”
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