Hibernia secures €400m credit line as pre-tax profit climbs

Hibernia REIT has secured a €400 mln revolving credit facility to back its investment and development programme in Ireland.

The news of the revolving credit facility (RCF) coincided with Hibernia reporting pre-tax profits of €74 mln for the six months from March to end-September 2015, more than double the result for the same period last year.

The RCF has a five-year term and was provided by a syndicate of three banks at a reduced margin to the €100 mln facility it replaces. The first revolving credit facility was due to mature in August 2017.

'This secures competitively priced and flexible financing for Hibernia for five years and will enable us to move quickly to take advantage of investment opportunities as well as to fund our development pipeline,' chief financial officer Tom Edwards-Moss said.

Bank of Ireland Corporate Banking is acting as agent and Bank of Ireland, Barclays Bank Ireland and Ulster Bank are acting as joint bookrunners and joint arrangers. Bank of Ireland is providing €190 mln of the total sum, with Barclays contributing €140 mln and Ulster Bank €70 mln.

In its interim results for the six months to end-September 2015, Hibernia reported pre-tax profit of €74 mln, including a revaluation surplus and gains on disposals, up from €32 mln in the same period last year.

Hibernia also reported an interim dividend of 0.7 cent per share compared with 0.3 cent per share in September last year.

'We have made significant progress on our development portfolio and signed two major pre-lets. Hibernia’s strategy and skillset - allowing us to access off-market deals, loan portfolio opportunities and to take on major development and refurbishment projects - is clearly delivering,' Hibernia CEO Kevin Nowlan said.

'The Dublin property market is well supported by the economic growth Ireland is enjoying and with new, flexible funding in place allowing us to act quickly as opportunities arise we are optimistic for the future,' he added.

Hibernia is listed in Dublin and London and manages about 20 properties in Dublin valued at €635 mln.