GAP to Raise MX$4.5 billion Sustainability Bond

Grupo Aeroportuario del Pacífico (GAP) plans to raise a sustainability bond in 2023. The group is also reporting a positive year after growing its total passenger traffic and investing to improve its terminals. 

GAP aims to raise MX$4.5 billion (US$237 million) for a sustainability bond and plans to offer MX$5.4 billion (US$284 million) on March 23 on the Mexican Stock Exchange (BMV), as reported by RealEstateMarket. GAP, which operates airports in Mexico and Jamaica, will divide the operation into two series:  the first one with a maturity of three years, at a variable interest rate calculated based on the 29-day Interbank Equilibrium Rate and the second with a maturity of seven years with a fixed interest rate.

"The company will allocate the resources obtained to meet its investment needs in assets in accordance with the current Master Development Programs (PMD) authorized by the Ministry of Infrastructure, Communications and Transportation (SICT) for the period 2020-2024 and for investments as a result of the expansion of the Guadalajara airport”, said Juan Barbosa, Specialist, Fitch Rating, according to RealEstateMarket. 

GAP has also been labeled an attractive stock, according to Yahoo Finance, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). Yahoo Finance attributed an upward trend in earnings estimates to the rating change, arguing that it is “one of the most powerful forces impacting stock prices.” The rating is determined by a company’s changing earnings picture, and it tracks EPS estimates for the current and following years. Sell-side analysts covering the stock provide a consensus measure that reflects on the Zacks Consensus Estimate.

“For Grupo Aeroportuario del Pacífico, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher,” explained Yahoo Finance. 

In January 2023, GAP announced an increase in passenger traffic of 33.1% in comparison to the same month in 2022. The Puerto Vallarta International Airport reported the largest growth during the period, with an increase of 46.5%. Los Cabos came in second in terms of growth with 39.2%, followed by Guadalajara with 31.7% and Tijuana with 20.1%. In Jamaica, Montego Bay registered a growth of 67.6%, while Kingston grew by 59.6%, explained the group in its latest traffic report, as reported by MBN.