AMX Seen Issuing $100m+ in Chile

Regional mobile telephone powerhouse America Movil will issue up to $144m equivalent in its first ever Chilean peso denominated bond issuance, says a senior company source. A 5-year deal through Banco de Chile is expected this month, and the final amount may be lower, depending on price. The issuer claims to be doing the first bond in this format for a foreign company directly in the Chilean market. America Movil, one of the most advanced LatAm corporate issuers, has a Chile unit it will finance with proceeds, and wants a more active presence in CLP. The deal comes from a 30-year $1.2bn program, provisionally rated A3 (stable) by Moody’s. The agency notes America Movil’s leading position in Mexico – with approximately 73% of the wireless market – as well as LatAm, where it has close to 183m subscribers, operating cash flow of $10bn in 2008 and low leverage of 1.1x debt/Ebitda last year.