Telmex launches USD430m bond

26 Jan 2006

Mexico-based LatAm telecoms group Telmex has launched a global MXN4.5 billion (USD430 million) bond with an 8.75% coupon due to mature in 2016. Telmex launched the bond at par and said the offer would close on 31 January. The company has been buying back its own shares in Mexican currency since 1994 and is currently taking advantage of rising interest in peso-denominated paper spurred by record low inflation in the country. The telco recently failed in its attempts to have the income tax it is charged on its buybacks declared unconstitutional. The Supreme Court ruling saved the Mexican government from having to reimburse the company to the tune of MXN9 billion.

Mexico, Telefonos de Mexico (Telmex)