18 August 2023
Fibra Danhos successfully completes an issuance of Sustainability-Linked Bonds on the local market for MXN2.5 billion
On August 16, 2023, Fibra Danhos successfully completed the Sustainability-Linked Bonds totaling MXN2.5 billion pesos. Market response was positive, resulting in demand totaling MXN6.88 billion, a bid-to-cover ratio of 2.75 times the target. The bonds received credit ratings of AAA(mex) from Fitch México and HR AAA from HR Ratings.
BBVA supported Fibra Danhos as sole structuring agent and underwriter in the deal, and the assigned ticker symbol was DANHOS 23L. The MXN2.5 billion bond was issued at a term of 7 years and a fixed nominal rate based on the Interpolated 2029-2031 MBono pus a spread of 145 basis points (fixed coupon of 10.67%). The final transaction price came in 20 basis points below the initial price talk (IPT).
The issue was taken up by various local investors, particularly AFOREs, insurance firms, mutual funds and brokerage firms. The proceeds of the issue will be used to refinance existing liabilities and general corporate uses.
The target on which the terms of these SLBs are based is to obtain sustainable certification of a percentaje of Fibra Danhos’ property portfolio, through operating certifications like LEED Gold and/or Platinum. The issue is a major landmark for the Mexican real-estate market because of the commitment to sustainable development and responsible finance. It also underscores local investors’ interest in issuers that are committed to ESG practices.
BBVA is grateful to Fibra Danhos for entrusting to it this landmark deal.