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

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.

 

2020

  • 2020: We launched the first edition of Semillero Nutrisa. Together with Nutrisa and the Victoria147 business academy for women, we invited women entrepreneurs to participate in a training program to improve the management of their businesses and have the potential to become part of our supply chain.

We established our first technological alliance with Google, which will allow us to accelerate the digital transformation of Grupo Herdez through the use of Google Cloud Platform tools such as BigQuery ML, Looker, among others.

Through the Herdez® brand and Aires de Campo® we joined the “Sowing a New Normality” initiative, promoted by the civil society organizations RĂ­os Tarango and Ectágono, which aims to increase the vegetation cover of the environmentally valuable area Barranca de Tarango.

  • 2021: We developed the Group’s second proprietary e-commerce platform, with the Nutrisa® online store.

We updated the apps through which we manage the loyalty programs of our retail brands, Cielito Querido Café® and Nutrisa®, improving our customers’ in-store experience.

During the year, 15 formulas had their nutritional profile strengthened by reducing some critical added nutrients (sugars, sodium and saturated fats).

  • 2022: We expanded our capabilities into new categories through the acquisition of Interdeli and Deli, Dips & Snacks. Integrating brands such as Libanius, Flaveur, Liguria and Señor Cactus into our portfolio.

We Issued the first sustainability bond through which we
committed to a 25% reduction in our water consumption.

Together with our partner McCormick & Company, Inc. we
brought the most iconic Mexican cuisine to the tables of the United Kingdom
through meal kits, sauces and condiments under the Herdez® brand.
  In less than a year, we obtained a 5.5% shelf
share in the Tesco supermarket chain.

We consolidated the integration of Chilim Balam® into retail brands, a leading brand in the snack segment