Grupo Aeroportuario del Pacífico Raises $10.7B Through Bond Issuance to Fund Growth

Grupo Aeroportuario del Pacífico (GAP), one of Mexico's largest airport operators, has successfully completed the issuance of Ps. 10,718.0 million in long-term bond certificates across two tranches, demonstrating robust investor confidence in the company's growth trajectory. The offering achieved a 1.74x oversubscription, signaling strong market appetite for the company's debt instruments. Both tranches received the highest credit ratings—Aaa.mx from Moody's and mxAAA from S&P—underscoring the financial strength and stability of the Mexico City-based airport operator.

The capital raise represents a strategic move by GAP to fund two major initiatives: the acquisition of a 25% stake in Cross Border Xpress (CBX), a cross-border air service operator, and substantial capital expenditures aligned with the company's ambitious 2025-2029 Master Development Program. This dual-purpose deployment of capital reflects GAP's commitment to both geographic expansion and infrastructure modernization across its airport portfolio.

Strategic Acquisitions and Capital Deployment

The Ps. 10.7 billion bond issuance will support GAP's acquisition of a significant minority stake in Cross Border Xpress, a strategic move that positions the company to capture growing demand for cross-border aviation services. This acquisition represents a meaningful expansion of GAP's operational footprint beyond traditional airport terminal management and into niche, high-growth segments of the aviation industry.

Beyond the CBX acquisition, the proceeds will fund critical infrastructure investments under GAP's comprehensive 2025-2029 Master Development Program, which includes:

• Terminal expansions and modernization across key airport hubs
• Runway and ground infrastructure improvements
• Digital transformation and passenger experience enhancements
• Environmental sustainability initiatives
• Connectivity improvements at secondary and regional airports

These capital investments are designed to position GAP for sustained revenue growth and operational efficiency as Mexican aviation demand continues to rebound and expand following the pandemic recovery phase.

Market Context: Mexico's Aviation Sector Recovery and Airport Consolidation

The successful completion of this bond offering arrives amid a broader recovery in Mexico's aviation sector, which has seen robust passenger traffic growth and expanding middle-class travel demand. Mexico's airport sector has become increasingly attractive to institutional investors seeking exposure to Latin American infrastructure with stable, inflation-linked cash flows.

GAP operates eight airports across Mexico's Pacific coast and interior regions, serving approximately 50 million annual passengers pre-pandemic, with traffic metrics showing consistent recovery trajectories. The company's portfolio includes strategic hubs such as Los Cabos, Guadalajara, and Puerto Vallarta, which benefit from both leisure tourism and domestic connectivity demand.

The 1.74x oversubscription ratio reflects several positive factors impacting investor sentiment:

• Mexico's investment-grade credit rating and relatively stable macroeconomic environment
• GAP's track record of steady revenue generation and dividend distribution
• Growing investor appetite for Latin American infrastructure assets
• Confidence in the company's diversification strategy through the CBX stake
• The highest-tier credit ratings from both Moody's and S&P, reducing perceived refinancing and default risks

The bond offering also comes as Mexican companies increasingly tap domestic and international capital markets to fund growth initiatives, with airport operators benefiting from secular tailwinds in travel demand and urbanization trends across Latin America.

Investor Implications and Strategic Significance

For shareholders and bondholders, this capital raise signals several important developments. First, GAP's ability to access capital at favorable terms—evidenced by the highest credit ratings—demonstrates financial stability and operational credibility with both equity and debt markets. The strong oversubscription suggests institutional investors view the company's growth strategy positively.

Second, the Cross Border Xpress acquisition represents portfolio diversification beyond traditional airport operations. CBX operates a unique cross-border air service model connecting San Diego to Tijuana, tapping into high-value passenger segments willing to pay premiums for time savings and convenience. A 25% stake provides GAP with meaningful exposure to this specialized market segment while potentially enabling operational synergies and knowledge transfer.

Third, the 2025-2029 Master Development Program suggests GAP management expects sustained or growing passenger demand over the five-year planning horizon, underpinning confidence in return on invested capital. Infrastructure investments typically generate returns through incremental revenues (landing fees, concession fees, parking, retail) as terminal capacity and passenger volumes expand.

For the broader Mexican infrastructure sector, this successful issuance reinforces the viability of financing large-scale projects through domestic capital markets, reducing reliance on foreign borrowing and currency exposure risks. The strong investor reception may encourage other Mexican airport operators and infrastructure companies to pursue similar financing strategies.

Looking Ahead: Execution and Value Creation

The success of Grupo Aeroportuario del Pacífico's Ps. 10.7 billion bond issuance reflects robust investor confidence in the company's strategic direction and financial health. As the company moves forward with the Cross Border Xpress acquisition and execution of its five-year master development program, investors will closely monitor passenger traffic trends, capital deployment efficiency, and return on invested capital metrics.

The highest credit ratings from Moody's and S&P provide a strong foundation for managing the increased debt load, though ongoing monitoring of leverage ratios, interest coverage, and cash flow generation will be critical as GAP executes its expansion strategy. For equity investors, value creation will depend on the company's ability to translate infrastructure investments and strategic acquisitions into revenue and earnings growth, ultimately supporting dividend yields and long-term share price appreciation.

The Mexican aviation sector's continued recovery, combined with GAP's strategic positioning and demonstrated capital market access, positions the company well to capitalize on growing travel demand across Mexico's Pacific region and beyond.