Category: Corporate & Sovereign Strategy

Mexico’s Genomma Lab, an OTC pharmaceuticals and hygiene products company, is considering tapping the dollar bond markets this year in order to finance acquisitions, CEO Rodrigo Herrera tells LatinFinance. It could look to raise up to $1bn to help fund the purchase of at least a dozen targets currently on its radar. Low interest rates in the US create the perfect environment for the company to fund its aggressive growth strategy in the US, Mexico, Colombia and Argentina, Herrera says. Herrera expressed a need to move quickly given the uncertain outlook for rates. Such a move would follow a local MXP2bn dual tranche loan earlier this year and a 2008 IPO. HSBC and Santander led the loan and are likely to get mandated should Genomma tap the international bond markets, Herrera says. The loan was the company’s first debt issuance and was used for the acquisition of 16 brands. It consisted of an MXP1.3bn 5 year tranche and a MXP700m 3 year. Multinational and local brands in the OTC and personal care sector that trade up to 3x Ebitda are on the company’s radar, though Herrera expressed interest in acquisitions that surpass its cash capacity.