FIBRA Macquarie Secures $150M Sustainable Credit from IFC (World Bank) for Industrial Projects in Mexico

FIBRA Macquarie has secured a $150 million credit from the International Finance Corporation (IFC), a private sector arm of the World Bank. This unsecured senior credit, due for repayment in June 2031, takes precedence over other credit in the event of liquidation but is not backed by specific assets as collateral.

With these funds, the real estate trust will drive the development of Class A industrial assets in key markets such as Tijuana, Mexico City, Monterrey, and Ciudad Juárez, which, according to the company, exhibit strong performance and favorable economic prospects.

This sustainable credit, the first of its kind granted by the IFC to a real estate investment trust (REIT or FIBRA) in Mexico, will accrue interest over the next seven years at a variable rate based on the 90-day Secured Overnight Financing Rate (SOFR), plus an additional margin of two percentage points (200 basis points) annually. Considering the SOFR has ranged between 5.3% and 5.4% from January 1 to July 1, 2024, this implies an annual interest rate between 7.3% and 7.4%.

According to SiiLA FIBRA Analytics, FIBRA Macquarie’s current net debt is nearly $920 million, translating to a loan-to-value (LTV) ratio of 30.3%. This indicates that the company’s debt equals one-third of its total asset value, reflecting a moderate leverage level and a relatively strong capacity to manage its financial obligations. Notably, the current LTV is one of the lowest in the past five years, during which the trust’s LTV averaged almost 33.9%.

Andrew McDonald-Hughes, FIBRA Macquarie’s Chief Financial Officer, emphasized that this new credit line would enhance the company’s financial flexibility and support its ability to finance growth initiatives amid favorable nearshoring trends toward Mexico.

“With projects currently under development, along with the recent acquisition of additional land in key markets like Monterrey, we have a portfolio of potential new properties to achieve attractive growth in the coming years,” McDonald noted.

The sustainable credit for FIBRA Macquarie includes a target to obtain green certifications for its properties. If this goal is met, the credit margin will decrease by 15 basis points; otherwise, the margin will increase by 15 basis points.

This goal aligns with FIBRA Macquarie’s “Sustainability-Linked Financing Framework,” issued in December 2023. This framework not only aims to align the trust’s investment strategies with international sustainable best practices but also reinforces FIBRA Macquarie’s unwavering commitment to EDGE green building certification. To date, FIBRA Macquarie has certified 74 out of 256 properties in Mexico, covering over one million square meters.

For more information on the development and performance of FIBRAs in Mexico, visit SiiLA FIBRA Analytics or contact us at contacto@siila.com.mx.