Project Details
Project
FIBRA Macquarie Mexico Sustainability-Linked Financing Framework Second-Party Opinion (2023)
Client
FIBRA Macquarie
Project Type
Sustainability Linked Bond or Note; Sustainability Linked Loan;
Industry Group
Real Estate
Use of Proceeds
N/A
Location
Mexico
Evaluation Date
Dec 2023
Evaluation Summary
Sustainalytics is of the opinion that the FIBRA Macquarie México Sustainability-Linked Financing Framework aligns with the Sustainability-Linked Loan Principles 2023 and the Sustainability-Linked Bond Principles 2023. This assessment is based on the following:
Selection of Key Performance Indicators
The FIBRA Macquarie México Sustainability-Linked Financing Framework defines one KPI: Percentage of certified industrial portfolio gross leasable area (GLA) over total industrial portfolio GLA (see Table 1). Sustainalytics considers the KPI chosen to be adequate given that it is an indirect measure of FIBRA Macquarie’s performance on a relevant and material environmental issue, and it follows a clear and consistent calculation methodology that is widely recognized across the real estate sector.
Calibration of Sustainability Performance Targets
Sustainalytics considers the SPTs to be aligned with FIBRA Macquarie’s sustainability strategy. Sustainalytics further considers the SPTs to be ambitious based on past performance and peer performance.
Bond and Loan Characteristics
FIBRA Macquarie will link the loan’s financial characteristics to the achievement of the annual SPTs, on an annual basis, in the form of an applicable margin increase if the KPI is below the respective annual targets and a decrease in the margin if the KPI is at least equal to the respective annual targets. For the bond, failure to achieve one of the SPTs will result in coupon margin adjustments or a principal repayment by an amount or percentage based on the transactional documentation.Reporting
FIBRA Macquarie commits to report on its progress on the KPI in its ESG report or on its website on an annual basis. FIBRA Macquarie commits to disclose relevant information that affects progress on the KPI. The reporting commitments are targeted to be aligned with the Sustainability-Linked Loan Principles and Sustainability-Linked Bond Principles.
Verification
FIBRA Macquarie commits to have external assurance conducted against the KPI, the annual SPTs on a yearly basis in its ESG report or on its website, which is aligned with the Sustainability-Linked Bond Principles and the Sustainability-Linked Loan Principles.