The first Fibra to raise international debt
offers important lessons for Mexico’s budding
real-estate investment trust sector
Fibra Uno has become the first
Mexican real-estate investment trust (Reit) to offer US
dollar-denominated debt. The deal employed structural
innovations that could pave the way for copycat deals in 2014.
The popularity of Reits, or Fibras as they are known by
their Spanish acronym, has been growing in Mexico and
internationally since Fibra Uno issued the first certificates
The connections between the Mexican and US markets, as well
as investors' familiarity with the US Reit, has allowed the
product to flourish in the equity market.
Transferring the structure to the debt markets was
considered the likely evolution of the asset class. And as
Mexican Reits developed the product, they looked closely to the
US market, says Clifford Chance partner Lewis Cohen who advised
Fibra Uno on the first-time offering.