Client or Matter Name

FIBRA Prologis – Successful offering of its second Green Bond in six months in the local market, for an amount of USD$70 million due in 2031.

Deal Description

We represented FIBRA Prologis in its successful second offering and placement of a USD denominated “Green Bond” in the Mexican Stock Exchange, registered before the National Banking and Securities Commission (CNBV).

The transaction consisted of the second issuance of Long Term Trust Certificates (Certificados Bursátiles Fiduciarios de Largo Plazo) under a Multi-Value Program for an amount of USD$70'000,000 due in 2031, which obtained AAA ratings from Fitch Mexico and HR Ratings and a coupon of US Treasury plus 2.10 (fixed interest rate).

Banco Actinvr acter as Issuer Trustee, the bookrunners for the offering were Casa de Bolsa BBVA and Scotiabank, and Monex Casa de Bolsa acted as common representative of the holders.

In this transaction, Sustainalytics (leading independent global provider of ESG and corporate governance research and ratings to investors), acted as the sustainable advisor that issued the "Second Party Opinion" on ESG.

This offering represented an over demand for the certificates of 1.43 times and represents the second debt issuance of FIBRA Prologis in the Mexican securities market in the last 6 months, with a total aggregate amount of USD$445’000,000, in which González Calvillo acted as the independent legal advisor in both transactions. The green bond previously placed by FIBRA Prologis in December last year, represented the first in its type in the history of Mexico.

Innovation & Additional Comments

This offering represented an over demand for the certificates of 1.43 times and represents the second debt issuance of FIBRA Prologis in the Mexican securities market in the last 6 months, with a total aggregate amount of USD$445’000,000, in which González Calvillo acted as the independent legal advisor in both transactions. The green bond previously placed by FIBRA Prologis in December last year, represented the first in its type in the history of Mexico.

Likewise, this transaction implied the execution of a parallel process of note-taking before the CNBV and the Mexican Stock Exchange to reflect certain changes approved by the Holders' Meeting to its leverage guidelines.

Jurisdiction

Mexico

Governing Law

Mexico

Deal Value

USD$70’000,000

Deal Duration, Date of Closing / Signing

Kick-off: March 2021
Closing Date: May 4, 2021

Practice Area

Capital and Debt Markets – Securities

Team GC

Bernardo Reyes Retana K. (lead partner)
José Víctor Torres (partner)
Francisco Álvarez (associate)
Diego Hernández Abascal (associate)
Pamela Suárez Arroyuelo (law clerk)

Other Firms Involved

KPMG as external auditors to FIBRA Prologis.
Sustainalytics as ESG Counsel.

Press Coverage (links)

Additional Comments

This was a particular transaction, due to the following reason:

  • 100% Mexican transaction.
  • FIBRA Prologis was the first issuer of a green bond in USD in Mexico.
  • This reflects FIBRA Prologis trust in the Mexican market.
  • The rate obtained.

This offering represented an over demand for the certificates of 1.43 times and represents the second debt issuance of FIBRA Prologis in the Mexican securities market in the last 6 months, with a total aggregate amount of USD$445’000,000, in which González Calvillo acted as the independent legal advisor in both transactions. The green bond previously placed by FIBRA Prologis in December last year, represented the first in its type in the history of Mexico