1. Vesta closed a $500M bond issuance at 5.5% due 2033. 2. The issuance received a BBB-/Positive credit rating from S&P and Fitch. 3. Proceeds will repay debt and fund Vesta's Route 2030 Strategy. 4. CEO emphasizes strong investor confidence and financial flexibility. 5. Vesta owns 231 properties across Mexico's industrial parks.
The successful bond issuance indicates financial strength and investor confidence, similar to other companies that have successfully refinanced debt to enhance their positions, often leading to price appreciation in the subsequent quarters. For instance, companies that utilize debt effectively, like Prologis, have seen their stock flourish post-refinancing announcements.
The issuance's scale and positive credit ratings are significant for Vesta's future growth prospects, indicating high investor confidence and financial strength that could lead to increased institutional investment. Additionally, successful debt management reflects a broader operational stability that typically pleases investors.
Debt refinancing will provide Vesta with enhanced financial flexibility over time, impacting its long-term growth strategy positively, similar to how companies in stable industries grow sustainably after securing lower interest rates. This strategic positioning can result in improved market performance as the company capitalizes on its operational strengths.
Corporación Inmobiliaria Vesta, S.A.B. de C.V. (the "Company" or "Vesta") (NYSE:VTMX, BMV:VESTA), a fully-integrated, internally managed real estate company that owns, manages, develops and leases industrial properties in Mexico, today announced the closing of US$ 500 million aggregate principal amount of 5.500% senior unsecured notes (the "Notes") due 2033. The issuance received a credit rating of BBB-/Positive by both, S&P Global Ratings and Fitch Ratings.
Lorenzo D. Berho, Chief Executive Officer of Vesta, commented: "Our successful bond offering further reinforces Vesta's balance sheet, enabling continued execution of Vesta's long term strategy with progress towards a fully unsecured capital structure, providing enhanced financial flexibility." He continued, "Our success is a testament to Vesta's financial strength and to long-term, top-tier investors' confidence in our Company's strategy, vision and future."
Net proceeds from this issuance will be used to prepay existing debt, extend the Company´s maturity profile, as well as for capital expenditures related to Vesta´s Route 2030 Strategy.
The Notes were offered and sold to persons reasonably believed to be qualified institutional buyers in the United States through a private placement pursuant to Rule 144A, and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended.
About Vesta
Vesta is a real estate owner, developer and asset manager of industrial buildings and distribution centers in Mexico. As of June 30, 2025, Vesta owned 231 properties located in modern industrial parks in 16 states of Mexico totaling an operating GLA of 41.7 million sf (3.9 million m2). Vesta has several world-class clients participating in a variety of industries such as automotive, aerospace, retail, high-tech, pharmaceuticals, electronics, food and beverage and packaging. For additional information visit: www.vesta.com.mx.
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Investor Relations in Mexico:
Juan Sottil, CFO
jsottil@vesta.com.mx
Tel: +52 55 5950-0070 ext.133
Fernanda Bettinger, IRO
mfbettinger@vesta.com.mx
investor.relations@vesta.com.mx
Tel: +52 55 5950-0070 ext.163
In New York:
Barbara Cano
barbara@inspirgroup.com
Tel: +1 646 452 2334