Televisa Fails to Launch in Mexico

Televisa cancelled its much-anticipated 10-year bond issue for up to MXP10bn that was expected yesterday in the domestic market. HSBC and Santander were managing the deal, rated AAA on a national scale. A lead banker said it was due to volatility in the market, and that because the company had no immediate need to issue it chose not to go ahead with the transaction. “The issuer will probably head to the international market instead now as it is deeper, which is more favorable for an issue of this size,” adds the banker. Investors say that the level of recent activity, with bond issues this week by Banamex for MXP6bn and Infonavit for MXP1.5bn, could have also saturated the local bond market. “It is an astute move not to issue, given market conditions, as there could have been a danger of low participation,” says a local investor. Another said an exact price for the transaction had not been defined, but he would have expected around Mbonos plus 120bp.