Neinor Homes, the Spanish residential property company, has organized a green loan with a three-year maturity to 2026.
The loan is being used as a refiannce tool to redeem bond notes issues in 2021. The cost of the loan, including the interest rate swap and savings from the various bond repurchases, is 4.17%, which is lower than the interest cost of the bond issued in 2021 before the start of the conflict in Ukraine, and the rise of inflation and interest rates, Neinor said.
It added the loan demonstrated the company’s creditworthiness and its ability to raise both project and corporate financing.
Banks financing the facility are jointly Banco Santander, BBVA and JP Morgan, ‘reflecting the financial support and appetite from both Spanish and international banks to invest in the Spanish market’.
Detailing the idea, Neinor said the loan allowed the company to exercise its right to redeem the outstanding balance of its green bond, the principal amount of which amounts to approximately €143 mln following a tender offer launched at the end of February this year. The redemption is expected to be executed later this month.
It is being seen as a ‘milestone’ in the company’s new strategic plan, of which one of the main pillars is to focus on shareholder returns with the aim of distributing approximately €600 mln by 2027. As previously reported, over the same period, the company plans to allocate more than €1 bn to new direct and indirect investments in order to manage its growth in a capital-efficient manner.
Jordi Argemí, Neinor Homes’ deputy CEO and CFO, said: ‘The notes’ redemption was key to meeting one of the main drivers of our new strategic plan disclosed to the market at the end of March: delivering shareholder returns of up to €600 mln between 2023 and 2027. In addition, we are proud to have been able to reduce the company’s net financing cost from 4.5% to 4%, in the context of ongoing high interest rates.’
Neinor has around 15,500 units and a GAV of €1.7 bn bn as of December 2022. The landbank is in Madrid, South East and West Andalucia, Levante, Basque Country and Catalonia.
