No Bells and Whistles Needed
Riding on the tails of Mexico?s freshly upgraded credit rating, Grupo Televisa, the Spanish-language television broadcaster, was able to raise $300 million with 30-year plain vanilla bond in the international market.
At a time when most Latin American governments, banks and
companies must invent complex structures to raise financing at
affordable rates, Mexican issuers are able to attract investors
with good old plain vanilla bonds at rock bottom prices. Now,
Grupo Televisa, the Mexican media group that is also the
world's largest Spanish-language broadcaster, has become the
first private-sector issuer in Latin America to successfully
launch a 30-year plain vanilla bond, further extending the
yield curve for Mexican corporates. At the beginning of March,
Televisa raised $300 million with a 30-year 144a bond with an
8.5% coupon led by Deutsche Bank Alex Brown, JP Morgan
Securities and Citigroup. Just as remarkable, the company
attracted five times the original issue and decided to upsize
the bond by $50 million. Says Alfonso de Angoitia, Televisa's
chief financial officer, "A lot of people who were focused
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