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Highly commended Latin American deal of the year 2013: América Móvil

América Móvil´s €2.1 billion inaugural hybrid
Bookrunners Barclays, BNP Paribas and Deutsche Bank
return to the Deals of the Year 2013 index

In September América Móvil confirmed its reputation as the most innovative Latin American issuer in the international debt capital markets with its inaugural hybrid transaction. The €2.1 billion-equivalent had three tranches across two currencies (the deal had a sterling tranche) and was designed to achieve a 50% equity credit from the rating agencies to strengthen its capital base. This was the first by any Latin American corporate issuer to achieve the objective. The result was a transaction that strengthened the company’s capital base and supported its senior credit ratings and was cheaper than issuing equity. Also, unlike issuing equity, the deal is tax deductible and incurs no shareholder dilution. The structure also provides América Móvil with the flexibility to defer interest without constituting an event of default.

The deal’s execution matched the excellence of its structure: despite a volatile market backdrop América Móvil became the first issuer in history to place a three-tranche (all 60 years) hybrid using intraday execution – as well as becoming the largest ever hybrid issuance to use intraday execution.

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