Grupo Herdez succesfully issues MXN 3.5 billion pesos in local bonds

Mexico City, Mexico, August 25, 2020 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (BMV: HERDEZ) today announced the successful issuance of MXN 3.5 billion through long-term pesodenominated bonds (certificados bursátiles) in the Mexican Securities Market.

Investors showed great interest in this issuance which translated on an oversubscription of 4.6 times the amount requested with a diversified investor base. For the 10-year bond, Grupo Herdez issued MXN 2.5 billion pesos with a surcharge of 189 basis points resulting in the lowest coupon rate in the Company’s history of 7.78%. This reflects the trust of our investors and the resilience of the sector were the Company participates.

The proceeds will be used to refinance short and long-term debt thus extending the average life of the debt from 4.0 to 6.5 years without an impact on cost.

The bond has credit ratings of “AA (mex)” from Fitch Ratings and “mxAA” from Standard and Poor’s.