November 1, 2006
Cash-rich Latin blue chips are in robust financial shape and ready to realize ambitious growth plans. Bankers expect a spate of acquisition related financing in 2007 as companies take advantage of low interest rates and near record levels of liquidity.
Carlos García Moreno, chief financial officer of pan-regional wireless operator América Móvil, says his firm is so cash rich that it would only tap the debt markets to fund an acquisition. With a net debt to Ebitda ratio of just 0.5%, García Moreno says Mexico's local bond market is looking increasingly attractive for relative value. "Both domestic and international investors like pesos and now that the government has been
Blue chip corporates have a broader array of financing options available to them than ever before. But the lower tier is being left behind.