Telmex Readies Local Bonds

Telmex is targeting October 28 for the sale of MXP4bn-MXP6bn in domestic floating-rate bonds. The phone operator is planning 2014 and 2016 tranches. The exact size has not been indicated, but bankers managing the transaction say Telmex is looking for MXP4bn-MXP6bn. Inbursa and Banamex are managing the sale, rated AAA on a national scale. Proceeds will help refinance a 4.75% coupon $950m dollar bond due next year, and cover general corporate purposes. In July, Telmex sold MXP8bn in 2011 bonds at TIIE plus 74bp and 2013s at TIIE plus 95bp. Also, its Telmex International spinoff – which sold MXP5bn in the local markets in September – filed to increase its 5-year shelf to MXP20bn from MXP10bn.