EM Corps Flashcards
AXIAN TELECOM (AXNTLC)
Axian Telecom is a pan-African telecommunications provider offering mobile, digital infrastructure, and financial services.
Teleco provider established in 2003 in Madagascar, has grown through acquisitions in Tanzania, Senegal, etc. Subscriber and EBITDA growth trends remain favourable across the company’s markets, as do sector wide trends, all suported by demographic and low penetration tailwinds. Leverage should start to moderate from a peak in early 2024 as the Tanzania capex program concludes mid-2024, supported by the lift to OCF from the consolidation of Free Senegal operations following the doubling of ownership stake in 4Q23 to 80% for a EUR 50mm outlay. Offsetting this may be further incremental acquisitions, and potentially something more transformational given prior interest in South Africa’s Telkom. Ratings upgrades are unlikely given the jurisidction profile and risk of M&A, which has prompted a downgrade by S&P given perception that the ownership will tolerate higher leverage.
B/B+
EM Corp - Africa
No USD Bonds Outstanding
IHS HOLDING LTD (IHS)
IHS Holding Ltd. is one of the largest independent owners and operators of telecommunications towers in emerging markets.
Largest markets are Nigeria (16.4k towers), Brazil (7.4k) and South Africa (5.7k). Lost a shareholder and customer MTN in 2023, announced a shift in strategy in Q3 2023 results. Reducing capex, costs, and focusing on core markets. Favorable long-term credit trajectory
B+/B+
EM Corp - Africa
$1.94bn in index across 3 issues
ALSEA SAB de CV (ALSEA)
Food Service Project SA, part of Alsea, operates various restaurant brands across Latin America and Europe. Public company, master franchisee of Domino’s, exclusive operator of Starbbucks in Mexico, Argentina, Chile, Colombia, and Uruguay. Also in Spain, Portugal
Solid revenue, EBITDA growth. Slightly positive FCF. Aiming to reach 2.0x net leverage. Diverified across coffee, fast food, casual dining, family dining
Ba3/BB
EM Corp - Americas
$0.50bn in index across 1 issues
AMERICA MOVIL SAB DE CV (AMXLMM)
America Movil SAB de CV is a leading telecommunications company in Latin America, providing mobile and fixed-line services.
Latin American teleco offering wireless and fixed voice services, data services (data centers, data admin, internet, wireless security, mobile payment), and sells equipment. Based in Mexico City. Weakened by regulatory and competitive pressures several years ago, but margins have recovered while market share, particularly in home market of Mexico, remains high. Spun off towers across LatAm. Rated 1-2 notches higher than Mexico
Baa1/A-/A-
EM Corp - Americas
$16.63bn in index across 15 issues
BBVA BANCOMER SA (TEXAS BRANCH) (BBVASM)
BBVA Bancomer SA (Texas Branch) offers banking services, including retirement, electronic payments, and online banking.
A3/A/A-
EM Corp - Americas
$6.30bn in index across 8 issues
CELULOSA ARAUCO Y CONSTITUCION SA (CELARA)
Celulosa Arauco y Constitución SA is a major Latin American forestry company producing wood pulp, timber, and panels.
Based in Santiago, Chile, wholly owned by Chilean conglomerate Empresas Copec. Second largest producer of pulp and wood panels. Vertically integrated, low cost producer, geographically diversified, but exposed to pulp prices (new supply additions)
Baa3/BBB-/BBB
EM Corp - Americas
$4.85bn in index across 10 issues
EMBRAER NETHERLANDS FINANCE BV (EMBRBZ)
Operates in the business of commercial and executive aviation and defense & security. Top manufacturer of commercial jets with up to 150 seats, privatized in 1994 but Brazilian gov’t has veto rights over certain decisions
Growing backlog and deliveries. Leverage on a downward trend
BB+/BB+
EM Corp - Americas
$1.27bn in index across 2 issues
EMPRESA NACIONAL DE TELECOMUNICACIONES SA (ENTEL)
Empresa Nacional de Telecomunicaciones SA (Entel) provides telecommunications services, including mobile, internet, and fixed-line.
Headquartered in Santiago, Chile, controlled by Almendral, a group of local business conglomerates and publicly listed. Challenging environment considering inflation, weak economies in Chile and Peru and fierce competition. Expect improvement. Committed to IG. Selling fiber assets to OnNet Fibra
Baa3/BBB-/BBB
EM Corp - Americas
$2.72bn in index across 4 issues ($1.36bn 144a)
GCC SAB de CV (GCCAMM)
GCC SAB de CV manufactures and markets cement, concrete, and aggregates for the construction industry.
Vertically integrated, above-average margins. Revenues come from US (65-70%) and Mexico, solid liquidity but small, acquisitive
BBB-/BBB-
EM Corp - Americas
$0.50bn in index across 1 issues ($0.50bn 144a)
InRetail Consumer (INRCON)
Manages retail consumer assets and operations in Peru.
Trust that owns Peruvian subsidiaries (Supeermarkets, Pharma; 50/50 split). Strong brand recognition, leading market positions
Baa3/BB+/BBB-
EM Corp - Americas
$1.20bn in index across 2 issues ($0.60bn 144a)
InRetail Shopping (INRSHM)
Manages shopping mall assets and operations in Peru.
Develops, operates, and manages shopping malls in Peru. Not a REIT, but similar business model in that cash flows are based on rental income. Largest shopping mall operator in Peru, long-term leases. But entirely exposed to Peru’s domestic economy
Ba2/BB+/BBB-
EM Corp - Americas
No USD Bonds Outstanding
LIMA METRO LINE 2 FINANCE LTD (LIMAMT)
Lima Metro Line 2 Finance Ltd. finances the development and construction of the Lima Metro Line 2 project in Peru which consistes of 27km
Government payments will compensate shortfalls from tariff collections, RPI-CAOs are unconditional obligations of the Gov’t, USD-denominated. Bonds are not a direct obligation of the government. Political risk with the annual budgeting process
Baa1/BBB-/BBB-
EM Corp - Americas
$0.96bn in index across 2 issues ($0.96bn 144a)
MEXICO REMITTANCES FUNDING FIDUCIARY ESTATE MANAGEMENT SARL (EKT)
Mexico Remittances Funding Fiduciary Estate Management SARL manages funds related to remittances and financial services in Mexico.
Downgraded to BB by Fitch in Mar 24. If downgraded further, 60% of all cash flows would be trapped and used to prepay bondholders (principal and interest) until the bonds are fully repaid, which would take less than one month
BB/BB-
EM Corp - Americas
No USD Bonds Outstanding
MV24 CAPITAL BV (MVFPSO)
MV24 Capital BV is involved in financing and managing floating production storage and offloading (FPSO) units.
Floating production storage and offloading vessel operates in a pre-salt oil field and represents 4% of Brazil’s hydrocarbon production; 20yr Charter Agreement. Single asset concentration: cash flows are tied to one FPSO, but cash flows are predictable. Bonds have a fully amortizing structure
BB/BB+
EM Corp - Americas
$0.87bn in index across 1 issues
ORBIA ADVANCE CORPORATION SAB DE CV (ORBIA)
Orbia Advance Corporation SAB de CV produces and markets specialty products in the chemical, infrastructure, and agriculture sectors.
Earnings can be volatile, acquisitive. Vertically integrated and diversified global footprint. Headquartered in Mexico City
Baa3/BBB-/BBB
EM Corp - Americas
$6.10bn in index across 11 issues ($3.25bn 144a)
