- Closing of two new unsecured sustainability-linked credit facilities for US$150 million and US$100 million, proceeds used to prepay US$250 million private placement notes
- Meaningful extension of weighted average debt tenor to 4.6 years and decreases weighted average cost of debt
- Sustainability-linked facilities with the inclusion of an updated ESG KPI linked to a green building certification target
MEXICO CITY–(BUSINESS WIRE)–FIBRA Macquarie México (FIBRA Macquarie) (BMV: FIBRAMQ) announced the closing of two sustainability-linked unsecured credit facilities with Banco Nacional de Comercio Exterior, S.N.C., I. B.D. (“Bancomext”) and Banco Mercantil del Norte, S.A., I.B.M., Grupo Financiero Banorte (“Banorte”) for US$150 million and US$100 million, respectively. Proceeds have been used to prepay the US$250 million private placement notes that were scheduled to mature on June 30, 2023.
These new facilities extend maturities for five years and incorporates a green building certification goal, while significantly increasing the sustainability and green financing linked portion of drawn debt, from 30.0% to 58.2%. FIBRA Macquarie also entered into interest rate swaps to cover 100% of the notional amounts of the new loans. Fixed-rate debt represents 95.7% of total debt outstanding. FIBRA Macquarie’s cost of funding has been reduced to 5.5% per annum, whilst debt tenor has increased to now be approximately 4.6 years.
Andrew McDonald-Hughes, FIBRA Macquarie’s chief financial officer stated, “This refinancing further enhances our debt profile. Even as global market conditions remain challenging, we were able to achieve attractive terms on our new debt, with an extended tenor and an overall reduction in our cost of debt. Additionally, we continue to prioritize our sustainability efforts, and have increased the portion of our debt linked to sustainability KPIs which should further improve our credit spread margin upon attainment of these goals. With the completion of this refinancing, we have no material debt maturities until 2026 and maintain strong liquidity through existing undrawn committed revolver facilities.”
US$150 million five-year sustainability-linked unsecured credit facility with Bancomext
FIBRA Macquarie entered into a US$150 million sustainability-linked unsecured term loan with Bancomext. The non-amortizing facility has a five-year term and will bear interest at a variable rate of 90-day term SOFR plus a credit spread of 185 basis points per annum. Taking into account the associated interest rate swap, the all-in fixed-rate cost of debt is 5.7% per annum. In addition, the facility features an ESG KPI credit spread adjustment of +/- 5 basis points per annum.
US$100 million five-year sustainability-linked unsecured credit facility with Banorte
FIBRA Macquarie entered into a US$100 million sustainability-linked unsecured term loan with Banorte. The non-amortizing facility has a five-year term and will bear interest at a variable rate of 90-day term SOFR plus a credit spread of 195 basis points per annum. Taking into account the associated interest rate swap, the all-in fixed-rate cost of debt is 5.8% per annum. In addition, the facility features an ESG KPI credit spread adjustment of +/- 5 basis points per annum.
Sustainability-linked KPI relating to green building certification
A sustainability-linked KPI aligned to FIBRA Macquarie’s aim of increasing the coverage of its green building certified properties has been incorporated into both of the new credit agreements. To the extent that FIBRA Macquarie achieves an annual target to ultimately obtain 48% green building certified coverage of its Industrial portfolio GLA by the end of 2027, FIBRA Macquarie will receive the benefit of a 5 basis points reduction in the applicable margin, otherwise a 5 basis points increase to the applicable margin will apply.
As of 31 March 2023, FIBRA Macquarie’s Industrial portfolio comprised approximately 30.5 million square feet of GLA of which 30.6% has achieved a green building certification. The first KPI test date will be 31 December 2023, for the 5-basis points adjustment to take effect during 2024.
About FIBRA Macquarie
FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie’s portfolio consists of 238 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of March 31, 2023. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit www.fibramacquarie.com.
Cautionary Note Regarding Forward-looking Statements
This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements.
Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
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