CADU has fully complied with all agreed obligations and restrictions associated to the Company's current debt. A chart depicting the most important aspects of the Company's debt is presented below:
| (Millions of MXN) | |||
|---|---|---|---|
| Bank Loans | |||
| Type | Amount (Sep-24) | Amount (Sep-23) | Amount (Dec-23) |
| Bridge Loans | $1,017 | $991 | $790 |
| Land Bank | - | - | - |
| Working capital | $448 | $684 | $688 |
| Total without loan origination fees | $1,466 | $1,675 | $1,478 |
| Credit opening costs | (17) | (32) | (27) |
| Total Bank Loans | $1,449 | $1,644 | $1,451 |
| Debt Securities - Local Notes (CEBURES) | |||
| CADU19 | - | $250 | $143 |
| CADU20V | $502 | $502 | $502 |
| Total without unamortized issuance costs | $502 | $752 | $645 |
| Unamortized issuance costs | (11) | (15) | (14) |
| Total Local Notes | $491 | $737 | $631 |
| Total Debt without loan origination fees and unamortized issuance costs | $1,968 | $2,427 | $2,123 |
| Credit opening costs and issuance expenses pending amortization | (28) | (47) | (42) |
| Total Debt | $1,940 | $2,380 | $2,082 |
All credit lines subscribed by CADU include a section corresponding to “Positive Covenants” and “Negative Covenants”. Such covenants are generic and the Company, as of today, has not entered into any credit line or facility that includes special or different covenants from those mentioned in the following illustrative but not comprehensive list:
On April 27, 2012 CADU issued a local note for MXN 300 million under the ticker symbol “CADU12”, with a coupon rate of TIIE + 4 pp. and two principal repayments, the first one for 50% on April 25, 2014 and the second one for the remaining 50% on its maturity date, which was April 24, 2015. The resources obtained were used to finance new housing projects, acquire land plots and refinance bank liabilities.
In order to provide credit enhancement to the issuance, on April 12, 2012, the Company subscribed a secondary guarantee with Nacional Financiera, S. N. C., Institucion de Banca de Desarrollo, covering 48% of the outstanding principal balance of the local notes with an annual cost of 2.9% on the guaranteed amount, which is payable monthly. The structure of the guarantee was made through the signing of a secured credit agreement and the establishment of a guarantee trust to which land plots were contributed with a commercial value that must be maintained at 1.5x the total amount of the credit line.
The local notes “CADU12” were fully settled on its legal due date on April 24, 2015.
On July 17, 2014 CADU issued a local note for MXN 300 million under the ticker symbol “CADU14”, with a coupon rate of TIIE + 2.5 pp. and two principal repayments, the first one for 50% on July 14, 2016 and the second one for the remaining 50% on its maturity date, which was July 13, 2017. The resources obtained were used to finance new housing projects, acquire land plots and refinance bank liabilities.
In order to provide credit enhancement to the issuance, on July 10, 2014, the Company subscribed a Garantia de Pago Oportuno (a secondary payment guarantee, known as GPO by its Spanish acronym) with the Sociedad Hipotecaria Federal, S. N. C., Institucion de Banca de Desarrollo (Federal Mortgage Society), covering 50% of the outstanding principal balance of the local notes at the payment date, with an annual cost of 1% on the outstanding principal balance of the local notes, which is payable monthly. The structure of the guarantee was carried out through the signing of an irrevocable trust agreement on the management, guarantee and source of payment, in order to guarantee the fulfilment of the local notes' principal and interest payment obligations. The guarantee contributed was a land plot with a commercial value that must be maintained at 1.14 times the total amount of the credit line.
The local notes “CADU14” were fully settled on its legal due date on July 13, 2017.
On April 17, 2015 CADU issued its third local note for MXN 400 million under the ticker symbol “CADU15”, with a coupon payment on the 27th of each month at a TIIE + 2.9 pp. rate and the principal repayment will be carried out in 30 monthly installments on the 27th of each month, sequentially and in amounts equal to MXN 13.33 million. The first amortization will be executed on July, 2017 and the last one will be settled on December, 2019. The resources obtained were used to finance new housing projects, acquire land plots and refinance bank liabilities.
The local notes “CADU15” were fully settled on its legal due date on December 27, 2019.
On February 21, 2018 CADU issued its fourth local note for MXN 500 million under the ticker symbol “CADU18”. Since this is an unsecured emission, the coupon rate on these notes is TIIE + 2.9 pp. for a 5-year term.
Initially, the principal repayment would have been made in 34 monthly installments with equal amounts of MXN 14 million, as of April 21, 2020, but as consequence of COVID-19 health contingency, CADU reached an agreement with the bondholders for the extension of the principal payments for the months of May to December 2020 (to be paid on February 21, 2023, the maturity date), as well as a waiver of the pre-established covenants of this instrument for 2020, 2021 and 2022, therefore, in order to contribute to the payment of the deferred amount, a guarantee trust was incepted. The resources obtained were used for working capital and general corporate purposes.
The local notes “CADU18” were fully settled on its legal due date on February 21, 2023.
On April 12, 2019 CADU issued its fifth local note for MXN 500 million under the ticker symbol “CADU19”. The coupon rate on these notes is TIIE + 2.9 pp. for a 5-year term.
The principal repayment will be made in 14 monthly installments of MXN 36 million, as of March 12, 2023. It is important to note that as consequence of COVID-19 health contingency, CADU agreed with its bondholders a waiver of the pre-established covenants of this instrument for 2020, 2021, 2022 and 2023.
The local notes “CADU19” were fully settled on its legal due date on April 12, 2024.
On December 16, 2020 CADU issued its first green bond, under the ticker symbol "CADU 20V" for an amount of MXN 502 million, on a fixed rate of 9.13% and a 7-year term.
It is worth noting that this green bond is the first in the Latin-American housing industry to earn a certification from the Climate Bond Initiative (CBI) under the Low Carbon Buildings criteria. For CADU, this issue represents its sixth debt placement, being the first on the Institutional Stock Exchange (BIVA). The net proceeds from this issue will be allocated in the refinancing of ECOCASA housing projects, which are certified for their benefit to the environment. Through the foregoing, CADU bolsters its position as a leading developer in this type of housing while ensuring the reduction of greenhouse gas emissions, thus clearly attesting its commitment to the environment. It is important to note that CADU agreed with its bondholders a waiver of the pre-established covenants of this instrument for 2022, 2023 and 2024.