Neinor Homes has secured a €165 mln loan with a three-year term and also extended the maturity of their existing €140 mln debt by one year.

Neinor Homes

Neinor Homes

Banco Santander, BBVA, JP Morgan, and Société Générale participated in this financing deal and the cost of borrowing remains similar to a previous agreement in April 2023.

Following this transaction, Neinor's overall debt has increased by €25 mln, with the option of borrowing an additional €35 mln, bringing the total to a maximum of €200 mln.

Borja García-Egotxeaga, CEO of Neinor Homes, commented: ‘We highlight the degree of confidence of Spanish and international banks in financing Neinor, which allows us to opt for traditional debt structures while optimising our cost of capital.’

Jordi Argemí, deputy CEO and CFO, added: ‘This refinancing plays a very important role in the execution of our strategic plan. On the one hand, it allows us to extend the life of our corporate debt without increasing its cost and optimising our balance sheet. On the other hand, it gives us the option to accelerate the growth of our co-investment business.’

Looking ahead to 2024 and 2025, Neinor believes there is strong demand for housing and not enough new construction to meet it. This, combined with low household debt in Spain, strengthens the construction sector even as interest rates rise and the overall economic outlook is uncertain.

To capitalize on this situation, Neinor plans to increase investments over the next two years. Their €1 bn investment plan for the period 2023-2027 allocates half the funds for partnerships with new strategic partners and co-investment projects. They've already secured €300 mln in co-investment deals, achieving 60% of their five-year target.