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 |
(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.