ICBC contributes to MXN 33.69 billion syndicated revolving credit facility to América Móvil for refinancing purposes in 2014

ICBC contribution to MXN 33.69 billion syndicated revolving credit facility to América Móvil for refinancing purposes in Mexico in 2014 In August 2014, América Móvil reached an agreement with a syndicate of 21 banks— including ICBC —in which a MXN 33.69 billion (equivalent to USD 2.5 billion) revolving credit facility was provided to refinance América Móvil’s existing credit facility.

On October 4, 2014, the agreement reached financial close. The facility carried a five-year maturity along with an interest rate of LIBOR plus a margin of .45% (45 bps). ICBC contributed an estimated MXN 1.28 billion (approximately USD 95 million) to the facility. The revolving credit facility was issued to replace a prior facility that had expired.

As of December 31, 2018, the facility was undrawn.

The agreement imposed certain restrictions on América Móvil, including limitations on incurring secured debt, engaging in mergers that would result in a surviving entity that was not América Móvil, or the selling of virtually all of the company’s assets.

Furthermore, the facility required América Móvil to maintain a consolidated ratio of debt to EBITDA not exceeding 4:1 and a consolidated ratio of EBITDA to interest expense no less than 2.5:1. As of April 11, 2019, América Móvil had remained in compliance with those covenants.