GAP's Strategic Bond Issuance: A Masterclass in Debt Management

In a strategic move that underscores its commitment to proactive debt management and long-term growth, Grupo Aeroportuario del Pacifico (GAP) has successfully completed a Ps. 6.0 billion bond certificate issuance in Mexico. The issuance, which was oversubscribed by 3.4x, consists of two tranches: a Ps. 3.0 billion issuance ('GAP 25') with a variable rate TIIE+50bps, payable every 28 days, maturing in 2028; and a Ps. 3.0 billion reopening of 'GAP22-2' with a 9.67% fixed rate, payable every 182 days, maturing in 2032. Both issuances received top credit ratings in Mexico, 'Aaa.mx' from Moody's and 'xAAA' from S&P, reflecting GAP's strong credit profile and investor confidence.

The proceeds from these issuances will be used to repay existing debt certificates 'GAP 20' (Ps. 3.0 billion) and 'GAP 21' (Ps. 2.5 billion), as well as to fulfill committed investments under the Master Development Program for the 2025 fiscal year in Mexico and for commercial investments. This allocation of funds supports GAP's long-term growth objectives by addressing near-term refinancing risk, extending the debt maturity profile, and securing additional capital for strategic infrastructure investments.

GAP's dual-tranche approach to debt issuance offers several advantages and disadvantages. On the one hand, the floating rate structure of the first tranche provides flexibility in a dynamic rate environment, while the fixed rate of the second tranche locks in long-term funding costs. On the other hand, the floating rate structure exposes GAP to interest rate risk, and there is still a potential refinancing risk in the future. However, GAP's proactive liability management and commitment to maintaining financial flexibility demonstrate its ability to navigate these challenges effectively.

The successful execution of this issuance strengthens GAP's financial position and supports its growth initiatives across its 14-airport portfolio, including strategic Mexican markets and Jamaican operations. The strong investor response and premium pricing validate GAP's market-leading position in airport infrastructure development and its commitment to enhancing its infrastructure and operational capabilities within the transportation sector.



In conclusion, GAP's strategic bond issuance represents a masterclass in debt management, demonstrating the company's ability to address near-term maturities, extend the debt maturity profile, and secure additional capital for strategic infrastructure investments. This approach enables GAP to maintain its financial flexibility, improve its airport infrastructure, and ultimately drive long-term growth and success. Investors and stakeholders should closely monitor GAP's progress in executing its Master Development Program and the impact of these investments on the company's operational efficiency and market position.