By Ben Miller
Mexico corporate debt: The Big Sell
América Móvil has added yet another capital markets first. Its CFO explains the creation of a new global-local security sold domestically and abroad — without the need for global depositary
Latin America's blue-chips have for many years found
international investors receptive to local currency bonds,
although liquidity concerns have tended to limit such sales. At
the same time, the number of domestic investors with appetite
for local currency has been growing across the region.
Mexico's América Móvil, a capital markets
pioneer with several regional firsts under its belt, wanted
greater - and regular - issuance in pesos, following the
integration of its Telmex assets. It had already issued
offshore global local currency-denominated bonds. Pemex and
Peru had sold global depositary notes (GDNs) that allowed the
same bond to be sold, via special certificates, to foreign and
local buyers at the same time. However, none of these options
seemed good enough.
What América Móvil wanted was what Mexico's
sovereign had: a single security denominated and payable in
pesos that could seamlessly be sold to locals and...
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