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Debt

12 Months Ended

Dec. 31, 2020

14.

Debt

The Company’s short-and long-term debt consists of the following:


At December 31, 2019						(Thousands of Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)		5.000%		2020		Ps. 11,774,764
	Fixed-rate Senior notes (i)		3.125%		2022		30,152,320
	Fixed-rate Senior notes (i)		3.625%		2029		18,845,200
	Fixed-rate Senior notes (i)		6.375%		2035		18,493,360
	Fixed-rate Senior notes (i)		6.125%		2037		6,958,119
	Fixed-rate Senior notes (i)		6.125%		2040		37,690,400
	Fixed-rate Senior notes (i)		4.375%		2042		21,671,980
	Fixed-rate Senior notes (i)		4.375%		2049		23,556,500

	Subtotal U.S. dollars						Ps.169,142,643

Mexican pesos
	Domestic Senior notes (i)		8.600%		2020		Ps. 7,000,000
	Fixed-rate Senior notes (i)		6.450%		2022		22,500,000
	Fixed-rate Senior notes (i)		7.125%		2024		11,000,000
	Domestic Senior notes (i)		0.000%		2025		4,757,592
	Fixed-rate Senior notes (i)		8.460%		2036		7,871,700
	Domestic Senior notes (i)		8.360%		2037		5,000,000

	Subtotal Mexican pesos						Ps. 58,129,292

Euros
	Commercial Paper (iv)		-0.230%		2020		Ps. 2,599,128
	Exchangeable Bond (i)		0.000%		2020		60,051,270
	Fixed-rate Senior notes (i)		3.000%		2021		21,131,123
	Fixed-rate Senior notes (i)		3.125%		2021		15,848,342
	Fixed-rate Senior notes (i)		4.000%		2022		15,848,342
	Fixed-rate Senior notes (i)		4.750%		2022		15,848,342
	Fixed-rate Senior notes (i)		3.500%		2023		6,339,337
	Fixed-rate Senior notes (i)		3.259%		2023		15,848,342
	Fixed-rate Senior notes (i)		1.500%		2024		17,961,454
	Fixed-rate Senior notes (i)		1.500%		2026		15,848,342
	Fixed-rate Senior notes (i)		0.750%		2027		21,131,123
	Fixed-rate Senior notes (i)		2.125%		2028		13,735,230

	Subtotal Euros						Ps.222,190,375

Pound Sterling
	Fixed-rate Senior notes (i)		5.000%		2026		Ps. 12,491,541
	Fixed-rate Senior notes (i)		5.750%		2030		16,239,003
	Fixed-rate Senior notes (i)		4.948%		2033		7,494,924
	Fixed-rate Senior notes (i)		4.375%		2041		18,737,311

	Subtotal Pound Sterling						Ps. 54,962,779

Brazilian reais
	Debentures (i)		102.900% of CDI		2020		Ps. 7,013,124
	Debentures (i)		104.000% of CDI		2021		5,142,958
	Debentures (i)		104.250% of CDI		2021		7,083,256
	Promissory notes (i)		CDI + 0.600%		2021		1,683,150
	Promissory notes (i)		106.000% of CDI		2022		9,350,832
	Promissory notes (i)		106.500% of CDI		2022		4,675,416

	Subtotal Brazilian reais						Ps. 34,948,736


Other currencies
Japanese yen
	Fixed-rate Senior notes (i)		2.950%		2039		Ps. 2,255,663

	Subtotal Japanese yen						Ps. 2,255,663

Chilean pesos
	Fixed-rate Senior notes (i)		3.961%		2035		Ps. 3,562,695

	Subtotal Chilean pesos						Ps. 3,562,695

	Subtotal other currencies						Ps. 5,818,358


Hybrid Notes
Euros
	Euro NC10 Series B Capital Securities (iii)		6.375%		2073		Ps. 11,622,118

	Subtotal Euros						Ps. 11,622,118

Pound Sterling
	GBP NC7 Capital Securities (iii)		6.375%		2073		Ps. 13,740,695

	Subtotal Pound Sterling						Ps. 13,740,695

	Subtotal Hybrid Notes						Ps. 25,362,813


Lines of Credit and others
U.S. dollars
	Lines of credit (ii)		5.500% - 9.020%		2020 - 2024		Ps. 9,359,340
Mexican pesos
	Lines of credit (ii)		TIIE + 0.050% - TIIE + 0.090%		2020		Ps. 22,000,000
Euros
	Lines of credit (ii)		0.030%		2020		Ps. 2,113,112
Peruvian Soles
	Lines of credit (ii)		3.550% - 3.700%		2020 - 2021		Ps. 15,351,211
Chilean pesos
	Lines of credit (ii)		TAB + 0.350%		2021		Ps. 4,821,222
	Financial Leases		8.700% - 8.970%		2020 - 2027		Ps. 54,596

	Subtotal Lines of Credit and others						Ps. 53,699,481

	Total debt						Ps.624,254,477

	Less: Short-term debt and current portion of long-term debt						Ps.129,172,033

	Long-term debt						Ps.495,082,444


At December 31, 2020									(Thousands of Mexican pesos)
Currency	Loan	Interest rate			Maturity				Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)		3.125%			2022			Ps.	31,917,920
	Fixed-rate Senior notes (i)		3.625%			2029				19,948,700
	Fixed-rate Senior notes (i)		2.875%			2030				19,948,700
	Fixed-rate Senior notes (i)		6.375%			2035				19,576,258
	Fixed-rate Senior notes (i)		6.125%			2037				7,365,559
	Fixed-rate Senior notes (i)		6.125%			2040				39,897,400
	Fixed-rate Senior notes (i)		4.375%			2042				22,941,005
	Fixed-rate Senior notes (i)		4.375%			2049				24,935,875

	Subtotal U.S. dollars								Ps.	186,531,417

Mexican pesos
	Fixed-rate Senior notes (i)		6.450%			2022			Ps.	22,500,000
	Fixed-rate Senior notes (i)		7.125%			2024				11,000,000
	Domestic Senior notes (i)		0.000%			2025				4,911,181
	Fixed-rate Senior notes (i)		8.460%			2036				7,871,700
	Domestic Senior notes (i)		8.360%			2037				5,000,000

	Subtotal Mexican pesos								Ps.	51,282,881

Euros
	Fixed-rate Senior notes (i)		3.000%			2021			Ps.	24,369,332
	Fixed-rate Senior notes (i)		3.125%			2021				18,276,999
	Fixed-rate Senior notes (i)		4.000%			2022				18,276,999
	Fixed-rate Senior notes (i)		4.750%			2022				18,276,999
	Fixed-rate Senior notes (i)		3.500%			2023				7,310,800
	Fixed-rate Senior notes (i)		3.259%			2023				18,276,999
	Fixed-rate Senior notes (i)		1.500%			2024				20,713,932
	Fixed-rate Senior notes (i)		1.500%			2026				18,276,999
	Fixed-rate Senior notes (i)		0.750%			2027				24,369,332
	Fixed-rate Senior notes (i)		2.125%			2028				15,840,066
	Commercial Paper (iv)		-0.230% -0.310%			2021				40,940,477

	Subtotal Euros								Ps.	224,928,934

Pound Sterling
	Fixed-rate Senior notes (i)		5.000%			2026			Ps.	13,634,936
	Fixed-rate Senior notes (i)		5.750%			2030				17,725,417
	Fixed-rate Senior notes (i)		4.948%			2033				8,180,962
	Fixed-rate Senior notes (i)		4.375%			2041				20,452,405

	Subtotal Pound Sterling								Ps.	59,993,720

Brazilian reais
	Debentures (i)		104.000% of CDI			2021			Ps.	4,222,597
	Debentures (i)		104.250% of CDI			2021				5,815,668
	Promissory notes (i)		CDI + 0.600%			2021				1,381,941
	Debentures (i)		CDI + 0.960%			2022				9,596,811
	Promissory notes (i)		106.000% of CDI			2022				7,677,449
	Debentures (i)		106.500% of CDI			2022				3,838,725

	Subtotal Brazilian reais								Ps.	32,533,191

Other currencies
Japanese yen
	Fixed-rate Senior notes (i)		2.950%			2039			Ps.	2,511,701

	Subtotal Japanese yen								Ps.	2,511,701

Chilean pesos
	Fixed-rate Senior notes (i)		3.961%			2035			Ps.	4,078,453

	Subtotal Chilean pesos								Ps.	4,078,453

	Subtotal other currencies								Ps.	6,590,154

Hybrid Notes
Euros
	Euro NC10 Series B Capital Securities (iii)		6.375%			2073			Ps.	13,403,133

	Subtotal Euros								Ps.	13,403,133

	Subtotal Hybrid Notes								Ps.	13,403,133

Lines of Credit and others
Mexican pesos
	Lines of credit (ii)	TIIE + 0.300% - TIIE + 1.000%		2021			Ps.	27,100,000
Peruvian Soles
	Lines of credit (ii)	1.200% - 1.450%		2021			Ps.	17,094,079
Chilean pesos
	Lines of credit (ii)	TAB + 0.350% and TAB + 0.450%		2021			Ps.	8,868,181
	Financial Leases	8.700% - 8.970%		2021 - 2027			Ps.	57,266

	Subtotal Lines of Credit and others						Ps.	53,119,526

	Total debt						Ps.	628,382,956

	Less: Short-term debt and current portion of long-term debt						Ps.	148,083,184

	Long-term debt						Ps.	480,299,772

L= LIBOR (London Interbank Offered Rate)

TIIE = Mexican Interbank Rate

CDI = Brazil Interbank Deposit Rate

TAB= Chilean weighted average funding rate

Interest rates on the Company’s debt are subject to variances in international and local rates. The Company’s weighted average cost of borrowed funds at December 31, 2019, and December 31, 2020 was approximately 4.16% and 3.72%, respectively.

Such rates do not include commissions or the reimbursements for Mexican tax withholdings (typically a tax rate of 4.9%) that the Company must pay to international lenders.

An analysis of the Company’s short-term debt maturities as of December 31, 2019, and December 31, 2020, is as follows:


	2019			2020
Obligations and Senior Notes	Ps.	88,438,286		Ps.	95,007,014
Lines of credit		40,722,004			53,062,260
Financial Leases		11,743			13,910

Total	Ps.	129,172,033		Ps.	148,083,184

Weighted average interest rate		3.31	%		2.23	%

The Company’s long-term debt maturities as of December 31, 2020 are as follows:


Years	Amount
2022	Ps.	112,091,112
2023		25,594,561
2024		31,721,298
2025 and thereafter		310,892,801

Total	Ps.	480,299,772

(i) Senior Notes

The outstanding Senior Notes at December 31, 2019, and December 31, 2020, are as follo


Currency*	2019		2020
U.S. dollars	Ps.	169,142,643	Ps.	186,531,417
Mexican pesos		58,129,292		51,282,881
Euros**		222,190,375		183,988,456
Pounds sterling**		54,962,779		59,993,720
Brazilian reais		34,948,736		32,533,191
Japanese yens		2,255,663		2,511,701
Chilean pesos		3,562,695		4,078,453

*	Thousands of Mexican peso s

**	Includes secured and unsecured senior notes.

(ii) Lines of credit

At December 31, 2019, and December 31, 2020, debt under lines of credit aggregated to Ps.$53,645 million and Ps.$53,062 million, respectively.

The Company has two revolving syndicated credit facilities, one for the Euro equivalent of U.S. $2,000 million and the other for U.S. $2,500 million maturing in 2021 and 2024, respectively. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2020, these credit facilities are undrawn. Telekom Austria has an undrawn revolving syndicated credit facility in Euros for €1,000 million that matures in 2026.

(iii) Hybrid Notes

We currently have a Capital Securities (hybrid notes) maturing in 2073: a series denominated in euros for a total amount of €550 million with a coupon of 6.375%. The Capital Securities are deeply subordinated, and when they were issued the principal rating agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50.0% equity credit). The Capital Securities are subject to redemption at our option at varying dates beginning in 2023 for the euro-denominated series.

(iv) Commercial Paper

In August 2020, we established a new Euro-Commercial Paper program for a total amount of €2,000 million. At December 31, 2020, debt under this program aggregated to Ps.40,940 million.

Restrictions

A portion of the debt is subject to certain restrictions with respect to maintaining certain financial ratios, as well as restrictions on selling a significant portion of groups of assets, among others. At December 31, 2020, the Company was in compliance with all these requirements.

A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of a change in control of the Company, as defined in each instrument. The definition of change in control varies from instrument to instrument; however, no change in control shall be considered to have occurred as long as its current shareholders continue to hold the majority of the Company’s voting shares.

Covenants

In conformity with the credit agreements, the Company is obliged to comply with certain financial and operating commitments. Such covenants limit in certain cases, the ability of the Company or the guarantor to: pledge assets, carry out certain types of mergers, sell all or substantially all of its assets, and sell control of Telcel.

Such covenants do not restrict the ability of AMX’s subsidiaries to pay dividends or other payment distributions to AMX. The more restrictive financial covenants require the Company to maintain a consolidated ratio of debt to EBITDA (defined as operating income plus depreciation and amortization) that does not exceed 4 to 1, and a consolidated ratio of EBITDA to interest paid that is not below 2.5 to 1 (in accordance with the clauses included in the credit agreements).

Several of the financing instruments of the Company may be accelerated, at the option of the debt holder in the case that a change in control occurs.

At December 31, 2020, the Company was in compliance with all the covenants.