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Grupo Herdez succesfully issues MXN 3.0 billion in Sustainability – linked bonds in the local market

/ Investors, Sustainability / By

Mexico City, Mexico, June 27, 2022 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (BMV: HERDEZ) today announced the successful issuance of MXN 3.0 billion through long-term peso denominated Sustainability-Linked Bonds (SLBs) in the Mexican Stock Exchange (MSE). BBVA México was the financial intermediary for the transaction.

  HERDEZ 22 L HERDEZ 22-2 L
Amount (MXN) $1,500,000,000 $1,500,000,000
Maturity 10 years 4.5 years
Rate Fixed Floating
Reference Mbono (1) + 75 pbs TIIE28 + 31 pbs
Coupon / Yield 9.78% 8.33% (2)
Amortization Bullet Bullet
Interest payment period Semi- annual Monthly
(1) Interpolated rate Mbono 31-34 (9.03%)
(2) First coupon

With the issuances of HERDEZ 22L and HERDEZ 22-2L, Grupo Herdez becomes the first food company in Mexico to place a Sustainability-Linked Bond (SLB). The Sustainability Performance Targets (SPTs) linked to these bonds will help to reach the goal to reduce 25% of water consumption per ton produced for 2030, achieving 1.98 m3 of water consumption per ton produced considering 100% of the production plants and distribution centers located in Mexico. Moody’s ESG Solutions issued the Second Party Opinion (SPO) and was rated as “robust”.

These issuances received great response from the investor community, which translated into an oversubscription of 3.9 times the amount requested within a diversified investor base. For the 10-year bond, Grupo Herdez issued MXN 1.5 billion with a spread of 75 basis points; while for the 4.5-year bond, the Company issued MXN 1.5 billion with a spread of 31 basis points. It is worth highlighting that these are the best spreads for Grupo Herdez.

The proceeds will be used to refinance short and long-term debt thus extending the average life of the debt from 4.6 to 6.5 years without an impact on cost.

These bonds have credit ratings of “AA (mex)” from Fitch Ratings and “mxAA” from Standard and Poor’s.

Download the press release

 

Grupo Herdez 2019

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2020

2020

  • 2020: In collaboration with La Costeña® and Sanfer®, we delivered 35,000 basic food baskets to benefit more than 175,000 Mexicans affected by the COVID-19 health contingency.

    We launched the first edition of Semillero Nutrisa®, a program to support Mexican women entrepreneurs to participate in a training and business development program.

  • 2021: We became the first consumer company in Latin America to partner with Google, a global technology giant, to accelerate our digital transformation. 

    We signed an agreement with the American company General Mills® to distribute their products in Mexico, with which we entered the categories of cereal bars and prepared dessert flours.


    We celebrated the 80th anniversary of Doña María® mole with the inauguration of Casa Doña María Pons, headquarters of Fundación Herdez® in San Luis Potosí.

    We were placed in the report “Mexican Companies for the 2030 Agenda in the Decade of Action” of the Global Compact, for the actions of the Saber Nutrir® program as a reference practice to achieve Zero Hunger, one of the 17 Sustainable Development Goals of the UN.

  • 2022: We acquired Interdeli and Deli, Dips & Snacks, expanding our capabilities to new categories such as hummus, cheeses, and dips, integrating brands such as Libanius, Flaveur, Liguria, and Señor Cactus into our portfolio.

    For the first time in our history, we brought the best of Mexican cuisine to the United Kingdom with the Herdez® brand, through a joint alliance with McCormick & Company, Inc.

    We issued the first sustainability-linked bond in the food industry in Mexico, committing to reduce our water consumption per ton produced by 2030.

    We signed the United Nations Women’s Empowerment Principles (WEPS), reaffirming our commitment to gender equality.

    We joined the UN’s CFO Coalition for the SDGs, which drives the transformation of corporate finance to achieve the goals of the 2030 Agenda.

    We joined the Pacto por la Comida of the BAMX Network, an initiative that promotes more sustainable food production and consumption systems, with the goal of reducing Food Loss and Waste in the industry.

  • 2023: We consolidated the integration of Chilim Balam® into the Impulse segment portfolio, with which we positioned ourselves in the candy and snack category in the retail model.

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