FIBRA Monterrey Issues Public Offering of CEBURES in Dollars

FIBRA Monterrey successfully completes placement of long-term trust certificates.
This issuance marks a milestone in the Mexican market as the first in dollars.

FIBRA Monterrey makes history with first-ever dollar-denominated REIT offering in Mexico.

By: SiiLA News

11/03/2020

FIBRA Monterrey, a Mexican real estate investment trust, has successfully completed its first public offering and placement of long-term trust certificates ("CEBURES"). The offering consisted of $100 million with a 7-year term and a fixed coupon rate of 4.60% payable every 182 days. This issuance marks a significant milestone for the Mexican capital market as it becomes the first placement of a FIBRA (REIT) in the domestic market denominated in dollars. The offering was well-received by institutional investors, with an oversubscription of 1.5 times, demonstrating the investors' confidence in this investment vehicle.

The net proceeds from the CEBURES placement will be used by FIBRA Monterrey to replace the outstanding balance under an existing credit agreement with a syndicate of banks. This will result in an extension of FIBRA´s Monterrey average debt maturity from 3.1 to 5.1 years while maintaining similar leverage levels. Additionally, the trust will be able to release guarantees on a significant portion of its investment properties, providing greater flexibility in its leverage scheme and contributing to maintaining a balanced capital structure and enhanced cash flow predictability.

The successful placement of FIBRA´s Monterrey CEBURES reflects investors' confidence in the trust and its real estate investment strategy. This transaction strengthens FIBRA´s Monterrey financial position and enables it to continue its growth and development plans in the Mexican market.

Read full article (in spanish).

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