FIBRA HD will place debt for up to 5 billion pesos in the BMV

Fibra HD has resumed its plans to obtain financing of up to 5 billion pesos on the Mexican Stock Exchange, with a five-year debt program allowing for multiple issuances of securities.
The real estate investment trust manages a portfolio of 41 properties for commercial, industrial, educational, and office use, with an occupancy rate of 90.46%.

FIBRA HD operates 41 commercial, industrial, educational, and office properties. Photo: FIBRA HD.

01/12/2023

FIBRA HD, a real estate investment trust focusing on commercial, industrial, and educational properties, has revived its plans to secure financing of up to 5 billion pesos on the Mexican Stock Exchange (BMV).

The company has submitted a request to the BMV, stating that the debt program will span five years, during which it can issue one or more series of securities as long as it does not exceed the authorized amount.

The specific allocation of funds from each issuance will be described in the corresponding announcements," said the issuer, without disclosing the date or amount of the first issuance. FIBRA HD manages a portfolio of 41 properties for commercial, industrial, educational, and office use, totaling 309,026 square meters of gross leasable area. The reported occupancy rate stands at 90.46%. In October 2021, the real estate trust reduced in size after selling 70.90% of its capital to FIBRA Plus, marking the first merger of its kind among Mexican REITs. In this transaction, holders who sold their participation in FIBRA HD exchanged their shares for FIBRA Plus certificates at a ratio of 1 FIBRA Plus certificate for every 2.5 shares.

A total of 309.9 million FIBRA HD's real estate trust certificates were issued, currently valued at 9.968 billion pesos in the stock market. Trading activity for FIBRA HD's real estate trust certificates (CBFIs) on the BMV has been low, with a trading price of 2.49 pesos per unit at Wednesday's close, reflecting a 0.80% decrease compared to the beginning of the year.

The company had previously submitted a request to establish a debt program in March 2022. By revisiting this objective, FIBRA HD becomes the first firm to seek long-term corporate debt financing on the domestic market in 2023. This follows the settlement of a bond issued in 2019 worth 1.388 billion pesos, which was paid using the proceeds from a syndicated credit received on November 7, 2022, totaling 4.5 billion pesos.

Despite market uncertainties, companies continue to show demand for long-term debt financing on the Mexican Stock Exchange. In the previous year, a total of 192.951 billion pesos were raised through 74 offerings of securities.

Read the full article (in Spanish).

Latam

Mexico

National

CRE

Fibra Analytics

Fibras

ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.