#Mexico #Mexico City #Genomma Lab #LAB 25 #LAB 23

Genomma Lab Successfully Issues Major Unsecured Bonds: LAB 25 and LAB 25-2

Genomma Lab Internacional, a leading name in the pharmaceutical and personal care sector in Mexico, has announced a groundbreaking move in its financial strategy. The company has successfully issued unsecured corporate bonds, known as Cebures, amounting to MXN 1.2 billion pesos, composed of two tranches: LAB 25 and LAB 25-2. This financial maneuver aims to bolster the company's liquidity and support its overall business model through proactive debt management.

Bond Details

The total issuance includes two separate offerings, LAB 25 valued at MXN 700 million and LAB 25-2 at MXN 500 million. These bonds have received high demand, oversubscribing by 1.25 times the total amount offered. The interest rates are competitively pegged, with LAB 25 offering TIIE plus 70 basis points and LAB 25-2, TIIE plus 77 basis points. Both bonds are structured with bullet principal payments and interest paid every 28 days, which adds to their appeal for investors.

The maturity dates for the bonds extend to May 27, 2031, and May 25, 2032, respectively, allowing Genomma Lab to optimize its debt maturity profile significantly. This strategy not only offers a clear timeline to investors but also improves the average life of its liabilities, reflecting a calculated approach to financial management.

Early Amortization of LAB 23

An integral part of this issuance is the planned early amortization of the LAB 23 bond, set for June 11, 2025. This decision is pivotal as it will enable the company to redeem liabilities early and thereby enhance its financial stability. The redemption will occur at the higher of either the face value of the Cebures or the average market price over the last 30 days. This proactive step emphasizes Genomma Lab's commitment to improving its balance sheet and managing its fiscal responsibilities effectively.

Genomma Lab's strategies are guided by principles of operational efficiency, aiming to leverage low-cost and flexible supply chain models to maximize profit margins. The company's rapid growth in both domestic and international markets is a testimony to its robust business model, which is grounded in the development of premium branded products that hold significant sales and market share in their respective categories.

Commitment to Investors

The success of this bond issuance reflects strong investor confidence in Genomma Lab's operational capabilities and market strategies. Actinver Casa de Bolsa, S.A. de C.V. acted as the bookrunner for these transactions, allowing for optimized structuring of the bond offerings to appeal to a broad range of investors. Ratings from Fitch Ratings and HR Ratings further validate the company's creditworthiness, standing at 'AA+(mex)' and 'HR AA+' respectively.

With a focus on sustainable growth and innovation, Genomma Lab continues to explore avenues for expansion and improvement. The proactive measures taken through these bond issuances underscore the company’s dedication to enhancing its financial health while preparing for future market challenges. As it looks to the future, Genomma Lab remains committed to delivering value to its stakeholders, ensuring a solid footing in the fast-evolving health and personal care landscape.

In conclusion, Genomma Lab's issuance of LAB 25 and LAB 25-2 bonds represents a strategic financial maneuver aimed at securing operational liquidity, optimizing debt profiles, and paving the way for sustainable growth. As the company continues to fortify its market presence, stakeholders and investors alike can anticipate positive outcomes from this pivotal financial decision.