About América Móvil
América Móvil, Latin America’s largest telecommunications company, is planning to raise up to 18,000 million pesos ($1.8 billion USD) through the issuance of new bonds.
Bond Reopening Details
The issuance involves reopening three foreign credit instrument emissions, one with the key AMX 0129 and others with a sustainable character having keys AMX 0131X and AMX 0129, according to preliminary emission documents.
The bonds, planned for execution on July 1st, have received the highest possible local rating from Fitch México, Moody’s Local MX, and S&P Global Ratings.
Bond Usage
América Móvil has not specified the use of the funds obtained, only mentioning general corporate purposes without ruling out debt refinancing. For sustainable bonds, the company also includes financing or refinancing of projects that meet eligibility criteria defined in its sustainable financing framework.
Reopening Program
This is the fourth time América Móvil has used a foreign credit instrument program with a limit of 130,000 million pesos ($6.5 billion USD), a five-year revolving and promissory character. However, it is not considered a new issuance as it’s a reopening of previous titles.
Understanding Foreign Credit Instruments
Foreign credit instruments, known as notes, are analogous to promissory notes or exchange-traded certificates representing individual holders’ participation in a collective credit obligation of the issuer.
América Móvil’s Debt Position
As of March-end, excluding leases, América Móvil’s net debt stands at 500,000 million pesos ($25 billion USD), equivalent to 1.5 times its operating cash flow over the past twelve months, as per their latest quarterly report.
Intermediary Brokers
The bond intermediary brokers will be Casa de Bolsa BBVA México, Casa de Bolsa Santander, Citi México Casa de Bolsa, Goldman Sachs México Casa de Bolsa, HSBC Casa de Bolsa, Inversora Bursátil Casa de Bolsa, JP Morgan Casa de Bolsa, and Morgan Stanley México Casa de Bolsa.
Key Questions and Answers
- What is América Móvil planning? América Móvil plans to raise up to 18,000 million pesos ($1.8 billion USD) by issuing new bonds.
- What types of bonds are being reopened? América Móvil is reopening three foreign credit instrument emissions, including sustainable bonds.
- What ratings did the bonds receive? The bonds have received the highest possible local ratings from Fitch México, Moody’s Local MX, and S&P Global Ratings.
- How will the funds be used? América Móvil has not specified the use of these funds, mentioning only general corporate purposes and potential debt refinancing.
- What is the purpose of sustainable bonds? Sustainable bonds will finance or refinance projects meeting specific eligibility criteria within América Móvil’s sustainable financing framework.
- What is the nature of this bond issuance? This is a reopening of previous titles under América Móvil’s existing foreign credit instrument program.
- What are foreign credit instruments? Foreign credit instruments, or notes, represent individual participation in a collective credit obligation of the issuer, similar to promissory notes or exchange-traded certificates.
- What is América Móvil’s current debt position? As of March-end, excluding leases, América Móvil’s net debt is 500,000 million pesos ($25 billion USD), equivalent to 1.5 times its operating cash flow over the past twelve months.
- Who are the intermediary brokers for these bonds? The intermediary brokers for these bonds are Casa de Bolsa BBVA México, Casa de Bolsa Santander, Citi México Casa de Bolsa, Goldman Sachs México Casa de Bolsa, HSBC Casa de Bolsa, Inversora Bursátil Casa de Bolsa, JP Morgan Casa de Bolsa, and Morgan Stanley México Casa de Bolsa.
