AMX Returns to CHF Market

America Movil has returned to the bond market to raise CHF250m ($255m), following up recent sterling and dollar issuance with a tap of the Swiss buyside. The 2018 bond represents the Mexican telecom’s third-ever CHF issuance, and priced at 99.942 with a 1.125% coupon to yield 1.135%, or mid-swaps plus 68bp. “Our intent is to develop sound investor bases for our name in different markets. That requires regular issuance and the provision of new liquidity,” CFO Carlos Garcia Moreno tells LatinFinance. The spread compares to the mid-swaps plus low-80bp levels seen Tuesday on AMX’s existing 2017 CHF bond. “This market is clearly open. There are not going to be many transactions, but it represents a diversification play. There is demand and we are having conversations for others,” says a banker close to the deal. The 2017 was AMX’s previous Swiss issuance, coming in August 2011, with the 2.0 % CHF270m pricing at mid-swaps plus 86bp. Credit Suisse managed Wednesday’s sale. The deal continues a busy issuance period for America Movil, which has raised $2.75bn in 2022 and 2042 dollar bonds, GBP750m ($750m) in sterling bonds and EUR1bn ($1.25bn) in Euro-denominated bonds in July and August. The fundraising follows agreements to increase its stake in Netherlands-based Royal KPN from 8.7% to 28% at a cost of around $3bn, and to take a 21% stake in Telekom Austria for $1bn.