Fibra Looking to Go Large with Local Bond

Mexico’s Fibra Uno real estate trust is targeting MXP13bn-MXP18bn ($983m-$1.3bn) in what would be the first-ever domestic bond placed by a Fibra fund, say bankers familiar with the deal. It had initially targeted MXP10bn. The real estate fund is considering up to four tranches and may choose among a 5.5-year floating rate bond, 10-year and 20-year fixed-rate bonds and 15-year UDI-denominated notes. Proceeds will be used to refinance bank debt. BBVA Bancomer, Banamex, Credit Suisse and Santander are managing. Fibra Uno’s CFO Javier Elizalde told LatinFinance in June it was plotting a domestic bond issuance this year, with the issuer previously relying on banking lines for leverage. The fund was Mexico’s first Fibra to IPO, in 2011.