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
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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