Category: Regions

Following the sovereign’s lead, América Móvil, the Mexican mobile heavyweight, launched 8 billion pesos ($734 million) in a 30-year 144a issue through HSBC and UBS. The spread was 80bp over the government 2036, inside guidance, and the transaction was heard well oversubscribed. In October, the Mexican government was the first in the region to sell a fixed-rate local currency 30-year, setting a benchmark for longer-dated corporate paper. América Móvil opened up the peso global market with a 5 billion peso 10-year through Credit Suisse in September 2005. It was followed by sister company Telmex in January. América Móvil is cash rich, so proceeds are likely either for refinancing or an acquisition.

Mexico’s Grupo Financiero Banamex, part of Citigroup, Wednesday announced a new organizational structure that sees current Banamex chief executive Manuel Medina Mora become chairman of the boards of Grupo Financiero Banamex and Banamex. Medina Mora is replaced as chief executive by Enrique Zorilla, who is also appointed head of commercial banking – one of the three new banking business heads. Meanwhile, Augusto Escalante becomes head of Banamex Cards and Julio de Quesada becomes head of corporate and investment banking. Oscar Medina Mora is named head of investment management.

Global private equity firm Advent International Wednesday announced it had acquired 100% of Mexican restaurant operator Grupo La Mansión. The company did not disclose any financial details of the deal. So far this year, Advent has made six investments in the region’s retail sector worth $900 million. The firm said it planned to make further acquisitions of restaurant chains in the country to expand the business in the domestic market and “achieve greater economies of scale.”

US mortgage insurance provider Genworth Financial received authorization from Mexico’s ministry of finance Wednesday to set up a mortgage insurance company. Genworth said in a statement that it expects to start writing mortgage insurance directly in the country by the second quarter of 2007, following final approval from regulators. The mortgage insurance business will be set up in Mexico City, said Alejandro Rivero, chief executive of Genworth Financial Mexico. The company already offers automobile, property and casualty, life and personal accident insurance through Genworth Seguros, based in the City of Leon. Mexico drafted and passed new legislation earlier this year to allow mortgage insurance to be sold.

Ratings agency Standard & Poor’s has assigned a Triple A rating to the mortgage-backed notes issued by Mexican Sofol Patrimonio and placed by Banamex. The notes mature November 25, 2033 and pay a fixed interest rate of 4.29%. The RMBS-backed securities, worth $92 million (994 million pesos) and issued in inflation-linked units or UDIs, are the first such instruments issued by Patrimonio, which is planning to issue five times that amount in total. According to S&P, it is the second RMBS issue in the local market to carry a full wrap; the first came from GMAC Financiera in October.

The Mexican state of Veracruz has sold $476 million worth (5.19 billion pesos) of local-currency securities backed by car-ownership tax receivables. The 30-year notes, denominated in local inflation-linked UDIs, pay a spread of 128bp over the 30-year UDI bond. The notes were placed by Vector Casa de Bolsa and Banorte. The issue was almost twice oversubscribed, according to the state finance ministry, with bids received totaling 10 billion pesos.