AMX Looks for Global Peso Retaps: CFO

America Movil (AMX) will look to reopen its new 2022 bond multiple times, building a sizable curve in the peso-denominated securities sold seamlessly to both international and domestic investors, its CFO tells LatinFinance. “We intend to tap the bond for 1.5 to two years before we issue a new 10-year bond. At the end of the five years we will have a very well-defined yield curve, in which the bonds outstanding will be $2bn-$3bn-equivalent in size,” Carlos Garcia Moreno says. The Mexican telecom’s plan is to stick to 10-year bonds, the maturity offering the best overlap between locals and internationals. Wednesday’s MXP15bn ($1.15bn) sale of Titulos de Credito Extranjeros, as the securities are known, drew more than MXP50bn in total demand. The official says about 35% of the deal was allocated to LatAm investors including Mexicans, Chileans, Peruvians and Brazilians. US buyers accounted for 56% and Europeans 9%. The Mbonos+93bp (6.45%) price compares to the dollar curve being at about 75bp-80bp after swapping, Garcia Moreno says. The new bonds tightened to around Mbonos+70bp Thursday. The issuer did not elect to exercise a greenshoe option early Thursday morning, he says. The motivation for the program was simple, Garcia Moreno explains, with the issuer wanting more peso debt following the integration of Telmex and other units into AMX, but without the liquidity constraints it found in its previous Europeso issuances. The key was achieving diverse investor base, he says, not just in terms of geography, but also in terms of investor types. The format of Wednesday’s sale allows for greater control of allocation. Going forward, AMX could retap as frequently as once per quarter. The same six banks – HSBC, Deutsche Bank, Morgan Stanley, BBVA, Citi and Credit Suisse – will handle the issuances going forward under the five-year MXP100bn program, rotating between active and passive roles. “There are other entities in Mexico that could use this