Deal of the month: Fibra Uno's US offering

Author: Zoe Thomas | Published: 24 Feb 2014

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 in 2011.

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.