Fibra Uno completes MXN6.7bn debt issuance on local market

On March 8, BBVA successfully closed an issuance of Trust Certificates for Fibra Uno (FUNO) for MXN6.70 billion. The deal involved sustainability-linked bonds (SLBs), and the market response was very positive: total demand of MXN6.92bn, a bid-to-cover ratio of 1.15x the target amount of MXN6bn.  Fitch Mexico gave the notes a credit rating of AAA(mex), and HR Ratings assigned it a rating of HR AAA.

BBVA acted as lead underwriter for the deal, which was issued in two tranches under a communicating vessels system. The first, FUNO 23L, for a total of MXN4.9bn at 10 years and a fixed rate, placed at a price of 195 basis points over the MBono 33 (fixed coupon of 11.30%), below the IPT shared with the market. The second tranche, FUNO 23-L, for a total of MXN1.73bn at a floating rate at 4 years, with a spread of 95 basis points above the 28-day TIIE, also a price below the IPT.

Participation in the deal was distributed across a broad base of local investors, prominently among them Afores, mutual funds, insurance companies, brokerage firms, private banks and others. The proceeds of the issuance will be used to refinance existing liabilities, including the FUNO 18 bond and other bank liabilities.

With this issue, FUNO commits to a goal of certifying 18.4% of its Gross Leasable Area (GLA) as sustainable (ESG Certification, LEED; BOMA or EDGE) by 2025, and 37.7% of its GLA for 2030. The GLA will be measured on the basis of currently existing buildings, not possible new developments.

The deal is a major step forward for the real-estate market in terms of sustainable development and responsible financing.  It also underscores the commitment of local investors to supporting issuers committed to ESG practices.

BBVA is grateful to F(NO for its confidence in choosing us to participate in this transaction.