AMX May Price Samurai This Week

America Movil (AMX) is expected to price a Samurai bond as soon as this week after guidance was heard released at yen Libor plus 70-90bp for a three-year fixed-rate tranche and plus 90bp-110bp on a fixed-rate five-year. The deal marks the first corporate issuance in this market in about five years and is an important litmus test for other LatAm blue-chips that may want to tap Japanese investors. Brazilian oil giant Petrobras was the last LatAm corporate to raise money in the Samurai market when it issued a JPY35bn 2.15% 10-year in 2006 at yen Libor+27bp. Leads were unavailable for comment. A Samurai would follow AMX’s $2bn 5-year bond and $750m retap of its 2040s in which it locked in the second lowest coupon ever achieved by a telecommunications company. AMX issued a CHF270m 2016 bond in August that came with a reoffer price of 99.775 to yield 2.039%, or mid swaps plus 86bp. AMX is rated A2/A/A. The Samurai transaction is being led by Mitsubishi UFJ-Morgan Stanley and Mizuho. This comes after America Movil also recently met investors in Europe via Deutsche Bank. Japan Credit Rating Agency has assigned an A rating with stable outlook to Japanese yen-denominated bonds from America Movil (AMX).