CORPORATE ISSUER: América Móvil

Jan 17, 2014

LOCAL CURRENCY DEAL FINANCING INNOVATION América Móvil MXN15bn global peso bond Pioneering a new type of local currency instrument and swaggering into European hybrid debt has set América Móvil apart as Latin America’s most sophisticated borrower

In anticipation of difficult conditions for US Treasuries last year, América Móvil toned down its dollar funding plans. The international telecom giant had raised $1.6 billion in the dollar market in 2012, and $2 billion the year before. But in 2013, the firm focused on its local market and European ones, raising just $750 million in dollars.

In late 2012, the borrower sold a 15 billion Mexican peso ($1.2 billion) 2022 bond, using a new structure that drew domestic and foreign investors. The format, dubbed Títulos de Crédito Extranjeros, offers a liquid instrument that can be easily traded between international and local accounts, without separate bonds or global depositary notes.

The senior unsecured note is registered with the US Securities and Exchange...

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“The crisis has been a setback for reserve diversification."

Jan Dehn, Ashmore Investment Management