Home Invest Belgium (HIB), Belgium's leading residential real estate landlord, has secured a €160 mln financing deal.
The deal strategically refinances all maturing debt until 2025 and fully covers HIB's ongoing development initiatives. This provides the company with ample breathing room to execute its ambitious expansion goals.
Four major banks – Belfius, BNP Paribas Fortis, KBC, and Argenta – have expressed their confidence in HIB by providing 5-8 year loans, further strengthening the company's financial profile.
Preben Bruggeman, CFO, commented: ‘Home Invest Belgium strengthens its credit profile with the conclusion of new long-term financings. This operation confirms the confidence of financial institutions in Home Invest Belgium and gives the company the means to realise its ambitions as a long-term investor in sustainable residential rental property.’
The financing deal includes the refinancing of a €40 mln bond and €95 mln in bank debts maturing before 2025 and the extension of remaining loans until late 2025, offering greater financial flexibility.
Additionally, it allocates funds to fuel HIB's development pipeline and drive future growth and also preserves HIB's property portfolio through a "senior unsecured" arrangement, eliminating the need for collateral or guarantees.
The financing deal solidifies HIB's financial footing with a 4.7-year average debt term and 93.1% fixed interest rates secured through hedging instruments.
Furthermore, demonstrating its commitment to sustainability, HIB has updated its Green Finance Framework, established in January 2022, aligning it with the latest green bond and loan principles. This framework guides investments in sustainable buildings, renovations, and renewable energy initiatives.
