America Movil Proposes Reopening Up to MXN18 Billion in Notes, Says Moody's

America Movil Proposes Reopening Up to MXN18 Billion in Notes, Says Moody's

Mexico City, June 19, 2025 - America Movil, a leading telecommunications company, has proposed to reopen up to MXN18 billion (approximately USD$933 million) in notes, according to a recent report by Moody's Investors Service. This move comes amidst ongoing regulatory scrutiny and financial restructuring efforts within the company.

The proposal, which is part of America Movil's broader strategy to manage its debt and financial obligations, follows a series of regulatory fines and investigations. In a recent development, Mexico's telecommunications regulator, Instituto Federal de Telecomunicaciones (IFT), fined America Movil's subsidiary Telcel MXN1.78 billion (approximately USD$93.3 million) for alleged monopolistic practices [1].

The fine, which was imposed on Telcel for striking exclusivity deals with convenience store chain Oxxo, has been contested by America Movil. The company has pledged to challenge the investigation and the fine. Additionally, the IFT has also levied fines on Oxxo and IMMEX, a subsidiary of Femsa, amounting to MXN19.5 million (approximately USD$1.02 million) [1].

America Movil's proposal to reopen notes is seen as a strategic move to bolster its financial position and address the regulatory challenges it faces. The company has been under intense scrutiny from regulators in Mexico, who have been aiming to limit its dominance in the telecommunications market. The recent fines and investigations are part of a broader effort by the Mexican government to promote competition and reduce market concentration.

Investors and financial professionals are closely monitoring the developments, as the regulatory environment and financial health of America Movil can significantly impact the company's future prospects. The company's ability to navigate these challenges and successfully reopen the notes will be a key indicator of its financial resilience and commitment to regulatory compliance.

References:
[1] https://developingtelecoms.com/telecom-business/telecom-regulation/18651-mexico-s-ift-fines-telcel-us-93-million.html