NEW YORK, March 7 (IFR) - America Movil tapped the euro market for 1.5bn (US$1.65bn) of senior unsecured funding on Monday, benefitting from strengthening investor sentiment about Latin America credits.
Investors placed around 2.7bn of orders for the Mexican telecoms company’s two-tranche deal, allowing it to tighten pricing on both by 10bp from initial pricing thoughts.
“They’re a frequent euro issuer but they haven’t issued in a while,” one banker close to the deal told IFR. “The coupon was attractive too.”
America Movil (A2/A-/A) priced a 850m eight-year at 120bp over mid-swaps, while its 650m 12-year tranche priced at mid-swaps plus 150bp.
Citi, HSBC and Societe Generale were joint bookrunners.
Bankers are upbeat about the prospects for this week, with the rally in oil driving improved sentiment about towards the region.
Alongside deals currently being marketed from Colombia, the Province of Buenos Aires and FEMSA, two other issuers from Mexico and Argentina could announce dollar deals later this week, a banker told IFR.
“It’s been more constructive over the last two days,” said the banker. “Oil is up ... the strong rally is giving a boost to Latin American credits.”
He said a more constructive view of Brazil was leading some Brazilian corporates to contemplate issuance.
The arrest of former president Luiz Inacio Lula da Silva last week in connection with the Petrobras corruption investigation has boosted Brazilian credit, said another banker.
“It was shocking but very positive,” he said. “It’s like a sweeping of the old guard.” (Reporting by Will Caiger-Smith; Editing by Marc Carnegie)