América Móvil in Inaugural Ps.17 Billion Sustainable Debt Offering
July 6, 2023
Cleary Gottlieb represented longtime client América Móvil S.A.B. de C.V. (América Móvil) in a benchmark offering of Ps.17 billion (approximately $1 billion) aggregate principal amount of 9.5% senior notes due 2031 denominated and payable in Mexican pesos.
The offering was conducted as a takedown of America Movil’s SEC-registered shelf registration statement and the notes were concurrently offered in Mexico and registered with the Mexican Comisión Nacional Bancaria y de Valores (CNBV).
The transaction is América Móvil’s inaugural sustainable bond offering in the international capital markets and represents a renewed effort in América Móvil’s plan to increase its funding in Mexican pesos.
The notes are an innovative asset class. They are payable in pesos, in contrast to traditional “euro-peso” bonds that are payable in U.S. dollars. The concurrent registration Mexico allowed the notes to be offered to retail and other non-institution investors in Mexico. The notes also clear on a fungible basis in the Mexican clearing system (Indeval), as well as the European clearing systems Euroclear and Clearstream.
América Móvil intends to allocate an amount equal to the net proceeds of the offering to finance or refinance, in whole or in part, expenditures and investments in new or existing “eligible projects” under América Móvil’s sustainable finance framework. The notes will be listed on the Luxembourg Stock Exchange and the Mexican Stock Exchange.
BBVA, Citigroup, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, and Santander acted as joint bookrunners. The transaction priced on June 27, 2023, and settled on July 6, 2023.
América Móvil is Mexico’s largest publicly traded company and the leading telecommunications services provider in Latin America. Cleary has advised América Móvil since 2000 on a wide variety of matters, including a substantial number of acquisitions and securities offerings.