Spanish residential developer Neinor Homes has successfully issued its second green bond, exceeding the initial target with a €325 mln issuance.
The bond carries a 5.25-year maturity (2030) and a 5.875% interest rate, representing a 62.5bps improvement on Neinor's overall cost of debt. It excludes Neinor's interest rate cap.
The bond has received a BB- rating from both Fitch and Standard & Poor's, further validating the positive outlook for the Spanish housing market. These ratings reflect a strong economy and improving affordability.
A key factor contributing to the bond's success is Neinor's strong orderbook, featuring 1,761 pre-sold housing units, generating over €600 mln in future revenue.
Borja García-Egotxeaga, CEO of Neinor Homes, commented: ‘We are very pleased with the outcome of this issuance where institutional investors have, once again, backed up the company reflecting the trust on our execution capacity, financial discipline and vision to anticipate investment cycles in the Spanish residential market. In the last 18 months we have shown precisely this by divesting €275 mln in BTR assets to core capital, raised and deployed €800 mln equity with opportunistic investors and now raised nearly €500 mln corporate debt from local banks and institutional investors.’
Jordi Argemí, deputy CEO and CFO, stated: ‘We are thrilled with the strong investor demand witnessed on this issuance, which reinforces the confidence on the management team and has allowed the company to improve the quality of its corporate debt with a lower cost and extending maturities. Furthermore, this issuance will play a critical role in the execution of Neinor’s strategic plan as it will allow us to continue to accelerate execution on equity efficient growth and shareholder remuneration.’
Neinor Homes will allocate €175 mln to repay existing corporate debt facilities, streamline its financial structure, and increase its corporate debt by €150 mln to fund future growth opportunities. These opportunities may arise from Neinor's own acquisition program or partnerships with co-investors, where the company has an additional €400 mln available for deployment.
The bond was 4x oversubscribed, reaching over €1,300 mln. The company has issued its second Green Bond and has committed to allocating 100% of the proceeds to Eligible Green Projects, as defined in its updated 2024 Sustainable Financing Framework.
