Mexican real-estate investment trust Fibra Uno, affectionately known as Funo, is making waves in the financial world with its ambitious plan to raise a whopping $800 million through a fresh cross-border sale of sustainability-linked bonds. The move not only marks a significant milestone for the firm but also highlights the growing trend of companies embracing sustainable finance practices.
The stage was set as Funo engaged in discussions with potential investors, eyeing the issuance of up to $400 million in seven-year bonds and an equal amount in 12-year notes. To orchestrate this complex financial maneuver, Funo enlisted a powerhouse team led by BBVA and JPMorgan as global coordinators, supported by Alterna, Bank of America, Citi, Goldman Sachs, Scotiabank, and Santander as joint bookrunners.
Commitment to Sustainability
At the heart of Funo’s bond offering lies a unique proposition – a step-up rate of 25 basis points on the notes would kick in if the company fails to meet its targets for increasing certified property gross lease areas within its portfolio. Ana Karen Mora, Funo’s dedicated ESG director, emphasized the importance of stringent building certifications encompassing operational energy efficiency, water conservation measures, waste management protocols, and carbon footprint reduction initiatives.
“We believe that building certification KPIs are crucial metrics that drive continuous improvement and performance across our properties,” Ana Karen highlighted during an investor presentation.
The strategic allocation of funds from this SLB issuance is earmarked for several key purposes. Notably among them is the early redemption of 5.25% 2026 global notes alongside debt repayment obligations and general corporate needs. The forward-thinking approach adopted by Funo underscores its commitment to managing debt efficiently while pursuing sustainable business practices.
Jorge Pigeon, at the helm of capital markets and investor relations at Funo since last November shared insights into the company’s future plans. He revealed that exploring opportunities within the bond market would be a top priority starting January. The ultimate goal? Issuing SLBs denominated in Mexican pesos and US dollars to optimize debt refinancing strategies – showcasing Funo’s proactive stance towards leveraging sustainable finance solutions.
Expert Insights
Industry experts laud Funo’s bold move into sustainability-linked bonds as a testament to its dedication towards environmental stewardship while navigating complex financial landscapes efficiently. By integrating sustainability targets into their financial framework through innovative mechanisms like step-up rates linked to performance metrics such as building certifications,
Funo sets a compelling example for businesses aiming to marry profitability with purpose.
As we witness this dynamic shift towards sustainable finance taking center stage globally,
Funo emerges as a torchbearer illuminating pathways where financial ingenuity meets environmental consciousness.
By embracing these transformative approaches,
businesses can redefine success paradigms,
fostering long-term resilience and positive impact on both society and ecosystems.
The realm of sustainable finance continues
to evolve rapidly,
with pioneers like
Funo paving
the way for meaningful change
across industries worldwide.
Amidst economic uncertainties
and environmental challenges,
companies willing
to adapt
and innovate stand poised
to shape
a more sustainable,
resilient future.
In conclusion,
Funo’s venture into SLB issuance signifies more than just raising capital;
it exemplifies
a strategic shift
towards aligning financial objectives with sustainability imperatives,
ushering in an era
where profitability coexists harmoniously with planet-friendly practices.
