FIBRA Monterrey Raises Capital to Join Nearshoring Boom

Real Estate Trust FIBRA Monterrey raised capital in the Mexican Stock Exchange (BMV), where its bonds were received well by Mexican and foreign investors. The move is part of the trust's strategy to expand its operations and exploit the opportunities that nearshoring offers to Mexico. 

Aiming to support its expansion plan, FIBRA Monterrey launched a public offering on the BMV for US$170 million. The offering gained the participation of over 6,000 investors. This is the first time a real estate trust makes a follow-on offering since 2019. 

FIBRA Monterrey issued 245,901,639 real estate senior bond trusts (CBFI) for US$0.60 a bond. The operation was carried out in conjunction with BBVA Mexico Brokerage House, Actinver Casa de Bolsa, Scotia Inverlat Casa de Bolsa, BTG Pactual and Grupo Bursátil Mexicano (GBM) as intermediaries, carried out simultaneously in Mexico and abroad. 

FIBRA Monterrey strives to expand its operations in the nine cities where it has a portfolio of properties for industrial and office use, based in important economic hubs: Chihuahua, Ciudad Juarez, Monterrey, Nuevo Leon, Saltillo, Coahuila, San Luis Potosi, Guadalajara, Jalisco, Irapuato, Guanajuato, Queretaro and Mexico City.

The transaction takes place in an environment of uncertainty amid a sluggish period for the BMV. According to José-Oriol Bosch, Director General, BMV, the transaction is a good example of how the stock exchange remains a great option for Mexican companies that are seeking investment. FIBRA Monterrey's representatives highlighted that the transaction was well-received by major investors as well as individuals, which are commonly referred to as retail investors.

This is not the first time FIBRA Monterrey carries out a major operation on the Mexican stock market. It entered the stock exchange in 2014, offering bonds valued at US$100.2 million, which were distributed among 755 investors. In 2020, the company was the first real estate trust to issue debt in foreign currency. 

In August 2022, the company announced the emission of the bonds. It said the debt was aimed to enable the trust to profit from nearshoring, which became relevant after companies realized the fragility of their often-offshore supply chains. "We are raising capital to participate in a very positive moment in time for the industrial sector, with record levels of absorption and increasing leasing activities from national and foreign companies," said Javier Llaca, Director of Operations and Investment, FIBRA Monterrey.