America Movil Treasurer Urges Domestic Reform

Ricardo Rivera, treasurer of LatAm wireless operator América Móvil, urges local regulators in LatAm debt markets to follow Peru and Mexico’s example and allow domestic investors to buy the debt of foreign companies invested in their countries. Rivera told panelists at Labif, “We have seen a lot of [local] investors that want to hold paper of other Latin American names and for regulatory reasons often can’t.” As companies pan out across the region, they are increasingly motivated to fund themselves in the currency of the countries where they have operations, says Rivera. “As an investor in other countries, issuing debt is another natural hedge for your investment and very attractive for corporates like us as a source of funding. “América Móvil has issued at attractive rates in Mexico, Peru and Colombia, but was frustrated by an attempt in Chile. “We found that between the different regulatory entities for pension funds, the Central Bank and the Ministry of Finance, there was not much coordination, which is fundamental for any kind of development to be done.” Rivera notes that Mexico’s corporate debt market has grown exponentially since allowing foreign companies to issue debt in there.