LatinFinance - July 2013 - 28

owners, raised 22.05 billion pesos ($1.73
billion) in its second equity follow-on
in January. The sale drew three times
demand, with over 170 domestic and
foreign institutional investors placing
orders, and was priced at a 4.1%
discount.
A rapid increase in investor demand
in the wake of the IPO underscored the
burgeoning enthusiasm for the asset
class. The January follow-on drew orders
from over 170 domestic and foreign
institutional investors, placing tickets on
average of $30 million equivalent. Just 12
buyers had been interested in the 2011
IPO, with average tickets of $7 million
equivalent. Foreign buyers bought 60%
of the offering, up from 23% in the initial
listing.
The sale added to the $700 million
raised in a 2012 follow-on and $300
million from the IPO, which took two
attempts to price. The Fibra Uno shares
had gained more than 130% through
early June.

Next stop: debt

There are no specific plans yet for another
follow-on, says CFO Javier Elizalde,
although the company is considering

a return to the market for more equity
capital whenever conditions warrant it.
While repeated equity sales are the
preferred approach for the Fibra funds,
debt financing may be next on the agenda
for Fibra Uno, says Elizalde. A domestic
bond is likely in 2013, he adds.
“The next step is to lever part of the
portfolio,” he tells LatinFinance. “We are
at 25%, and always intended the portfolio

“The stars are aligned right
now. Mexico is doing very
well”
Javier Elizalde, Fibra Uno
to be at 30%. Soon we could be issuing
debt.” The fund has so far relied on bank
lines.
When not raising equity capital, the
fund has been busy spending its proceeds.
It agreed to pay $1.44 billion for a
30-property portfolio in December. About
76% is industrial property, with the

remainder commercial and office space,
such as the Torre Reforma Latino Project
in Mexico City.
In May, it entered a joint venture with
Reichmann International to develop the
Torre Diana building in Mexico City. Fibra
Uno will contribute $50 million to the
$165 million cost. This followed the April
acquisition of two properties in Saltillo
and Chihuahua respectively, under a saleleaseback option with Pace Industries.
As the first and largest Fibra
expands further, new such funds are in
the making: by June, there were five,
including Fibras created by Macquarie
and Prudential Real Estate Investors.
Concentradora Fibra Hotelera Mexicana,
known as Fibra Hotel, raised 4.89 billion
pesos in June. Terrafina, Prudential’s
vehicle, is expected to be next in the
market.
Elizalde says that an improving
economic climate – which predates
a recent reform push by the new
government – is likely to boost Mexico’s
investment prospects.
“The stars are aligned right now,”
he says. “Mexico is doing very well.” If
economic reforms prove successful, he
says, the outlook will only improve. LF

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Corporate with the best bond market strategy

América Móvil

________________________________________________________________________________________________________________

The pioneer
Unfraid to push the boundaries, América Móvil landed yet another first with a
much-lauded global-local security

aving over the years issued a variety
of bonds in a number of markets
globally, América Móvil is no stranger to
accolades for its borrowing.
In the past year, it has sold dollar and
sterling deals, as well as one of LatAm’s
largest-ever Swiss franc-denominated
transactions. The standout, though, was
an innovative new global-local security
that offers corporates the same ease of

28 LatinFinance July 2013

execution afforded the Mexican sovereign.
The bonds, dubbed Títulos de Crédito
Extranjero, are sold seamlessly to both
foreign and Mexican investors without
the need for a depository note. The
instrument, which has already been
replicated by another Mexican borrower,
marks out América Móvil as the Latin
American corporate with the best bond
market strategy.

The company debuted the instrument
in November, selling 15 billion pesos
($1.15 billion) of 10-year securities in the
new format to yield 6.45%. It reopened
the note in February, adding 7.5 billion
pesos at a yield of 5.76%. The retap drew
17 billion pesos in demand.
The security has already found
admirers. Televisa used the format for its
own debt sale in May, selling 6.5 billion
pesos in 2043 títulos.
América Móvil’s original sale last year
drew 80% international investors, though
the first retap saw more domestic buyers.
This pattern was not unexpected, CFO
Carlos García Moreno says, due to the
growing assets of institutional investors in
Mexico.
“The local market is now affording you

LatinFinance - July 2013

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