No Bells and Whistles Needed

Apr 1, 2002

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 on...

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