Asia-Latin America: Red herring?
Latin America’s trade with China is booming. Yet the relationship between the two regions is a work in progress – as are moves to raise debt in renminbi
By Elliot Wilson
When América Móvil took the plunge into China's
offshore renminbi-currency debt market this February, the world
This, after all, was a hefty sale - and the first so-called
dim sum bond issued by a Latin American corporate. Preparation
for the sale, underwritten by HSBC Securities, had been
faultless. The giant Mexican telecom operator, owned by Carlos
Slim, ran roadshows the previous September in Singapore and
Investors were duly wowed, and América Móvil
raised Rmb1 billion ($158 million) in three-year debt: a
twice-oversubscribed sale with a coupon of 3.5% that compared
favorably with a similar deal by China Development Bank, a
major Beijing policy lender.
Slim's move was clever, strategic and timely. Trade between
Mexico and China has soared: bilateral trade with China jumped
to $58 billion in 2011, from just $542 million 16 years
Mexico is also a key...
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