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 took notice.
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 Hong Kong.
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
Mexico is also a key...
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