Grupo Aeroportuario del Pacifico Announces Issuance of Bond Certificates in Mexico for Ps. 3.0 Billion
Grupo Aeroportuario del Pacífico (PAC) successfully completes a Ps. 3.0 billion bond issuance in Mexico. The issuance was oversubscribed by 2.4x, generating significant interest. The proceeds will be used to pay off previous bond certificates. The bond certificates were issued under two ticker symbols, 'GAP24-L' and 'GAP24-2L', with different interest rates and maturity dates. GAP also introduced Sustainability Performance Targets linked to the bond issuance, aiming to reduce greenhouse gas emissions and achieve airport certification levels. The issuance received top credit ratings in Mexico from Moody's and S&P, indicating strong financial stability and credibility.
The issuance of long-term bond certificates by Grupo Aeroportuario del Pacífico represents a significant financial maneuver, indicating a proactive approach to debt management. The oversubscription rate of 2.4x suggests strong investor confidence in the company's creditworthiness. It is noteworthy that the proceeds are earmarked for refinancing existing debt, which could potentially improve the company's debt profile by extending maturities and locking in fixed interest rates amidst a volatile rate environment.
The interest rates, both variable and fixed, attached to the new bonds are reflective of current market conditions and the company's risk assessment by credit rating agencies. The inclusion of a Sustainability-Linked Bond Framework introduces an innovative financial instrument that aligns investor returns with the company's environmental performance, potentially appealing to an increasingly environmentally-conscious investor base.
GAP's commitment to reducing greenhouse gas emissions and achieving ACA Level 3 certification on a portion of its airports, as outlined in its Sustainability-Linked Bond Framework, demonstrates a strategic integration of sustainability goals with its financial instruments. The step-up interest rate provisions in case of non-achievement of these targets create a direct financial incentive for the company to meet its environmental objectives, potentially reducing its operational risks associated with climate change.
Moreover, the high credit ratings and the Second Party Opinion obtained from S&P suggest that GAP's sustainability practices are well-regarded and could mitigate the risk of 'greenwashing.' This could enhance the company's reputation among stakeholders and might lead to favorable borrowing terms in the future.
The successful bond issuance by Grupo Aeroportuario del Pacífico can be seen as a barometer for the airport services industry's financial health and investor sentiment. The credit ratings assigned to the bonds, 'Aaa.mx' by Moody's and 'mxAAA' by S&P, indicate a strong vote of confidence in the sector's stability and GAP's operational efficiency. The company's strategic positioning, serving both major cities and tourist destinations in Mexico, along with its expansion into Jamaica, suggests a diversification strategy that might be well-received in the market.
Additionally, the sustainability-linked aspect of the bonds could set a precedent in the industry, potentially influencing other companies to follow suit. This could pave the way for a broader adoption of sustainability-linked financial instruments in the infrastructure sector, aligning long-term financial goals with environmental and social governance criteria.
03/20/2024 - 06:23 PM
GUADALAJARA, Mexico, March 20, 2024 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V., (NYSE: PAC; BMV: GAP) (the “Company” or “GAP”) announced today that it successfully completed the issuance of 30 million long-term bond certificates in Mexico (Certificados Bursátiles ) at a nominal value of Ps. 100 each (One hundred pesos 00/100), for a total value of Ps. 3.0 billion. The order book reached an over-subscription of 2.4x over the original issuance amount.
The proceeds from this issuance will be allocated to the payment of the bond certificates under the ticker symbol “GAP 19” issued on March 27, 2019, and maturing on March 22, 2024, for an amount of Ps. 3.0 billion.
The bond certificates were issued in accordance with the following terms:
13,848,683 bond certificates were issued under the ticker symbol “GAP24-L”, at a nominal value of Ps. 100 (one hundred pesos 00/100) each, for a total value of Ps.1,384,868,300 million (one billion three hundred eighty-four million eight hundred sixty-eight thousand three hundred pesos 00/100). Interest will be payable every 28 days at a variable rate of TIIE-28 plus 25 basis points. The principal will be due at maturity on March 17, 2027. 16,151,317 bond certificates were issued under the ticker symbol “GAP24-2L”, at a nominal value of Ps. 100 (one hundred pesos 00/100) each, for a total value of Ps. 1,615,131,700 (one billion six hundred fifteen million one hundred thirty-one thousand seven hundred pesos 00/100). Interest will be payable every 182 days at a fixed rate of 9.94% . The principal will be due at maturity on March 12, 2031. In accordance with the Sustainability-Linked Bond Framework, GAP will annually publish, within its Annual Sustainability Report, an update on the Key Performance Indicator.
The Sustainability Performance Targets are:
Reduction of 25% of absolute scope 1 and 2 greenhouse gas emissions by 2025 compared to 2019. In case the target is not met, for the “GAP24-L” 20 basis points will be added to the coupon starting from February 28, 2026, and until its expiration; while for the “GAP24-2L, 10 basis points will be added to the coupon starting from February 28, 2026, and until its expiration. 14 airports with ACA Level 3 certification and at least three of them with ACA Level 3+ certification by December 31st , 2028. In case the target is not met, for the “GAP24-2L” 20 basis points will be added to the coupon starting from February 28, 2029, and until its expiration. The issuance obtained the highest credit ratings in Mexico, "Aaa.mx" by Moody's and "mxAAA" by S&P, both on a national scale with a stable outlook. Additionally, the Company obtained a Second Party Opinion from S&P, per the industry’s best practices.
COMPANY DESCRIPTION
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico ’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concessioner Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport in Kingston, Jamaica, and took control of the operation in October 2019.
This press release may contain forward-looking statements. These statements are statements that are not historical facts and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations, and the factors or trends affecting financial condition, liquidity, or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends, or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that June involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The website is www.lineadedenuncia.com/gap . GAP’s Audit Committee will be notified of all complaints for immediate investigation.
Alejandra Soto, Investor Relations and Social Responsibility Officer asoto@aeropuertosgap.com.mx Gisela Murillo, Investor Relations gmurillo@aeropuertosgap.com.mx/+52 33 3880 1100 ext. 20294
What was the total value of the bond certificates issued by Grupo Aeroportuario del Pacífico (PAC)?
Grupo Aeroportuario del Pacífico (PAC) issued bond certificates totaling Ps. 3.0 billion in Mexico.
What were the names of the two ticker symbols under which the bond certificates were issued?
The bond certificates were issued under the ticker symbols 'GAP24-L' and 'GAP24-2L' by Grupo Aeroportuario del Pacífico (PAC).
What are the Sustainability Performance Targets introduced by Grupo Aeroportuario del Pacífico (PAC) linked to the bond issuance?
Grupo Aeroportuario del Pacífico (PAC) aims to reduce greenhouse gas emissions and achieve airport certification levels with its Sustainability Performance Targets linked to the bond issuance.
Which credit ratings did Grupo Aeroportuario del Pacífico (PAC) receive for the bond issuance in Mexico?
Grupo Aeroportuario del Pacífico (PAC) received top credit ratings in Mexico, 'Aaa.mx' by Moody's and 'mxAAA' by S&P, indicating strong financial stability and credibility.
