Neinor Homes raises €140 million green loan and redeems its notes

Neinor announces a €140 million green loan, reflecting financial industry appetite for the company, despite the highly uncertain macroeconomic environment
The loan will be used to redeem the outstanding amount of its notes, which was reduced to approximately €143 million following the tender offer launched in February this year
This transaction is the first milestone in the company’s new strategic plan which expects to return up to 600 million euros to the company’s shareholders

Neinor Homes today announces that it has raised a green loan of 140 million euros with a three-year maturity (2026), demonstrating the company’s creditworthiness and its ability to raise both project and corporate financing.

A joint deal has been structured for this financing transaction, backed by Banco Santander, BBVA and JP Morgan, reflecting the financial support and appetite from both Spanish and international banks to invest in the Spanish market.

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.

The loan allows the company to exercise its right to redeem the outstanding balance of its green bond, the principal amount of which amounts to approximately €143 million following the tender offer launched at the end of February 2023. The redemption is expected to be executed on 27 April 2023.

The refinancing marks the first 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 million euros by 2027. Over the same period, the company plans to allocate more than one billion euros to new direct and indirect investments in order to manage its growth in a capital-efficient manner.

Jordi Argemí, Neinor Homes’ Deputy CEO and Chief Financial Officer, commented that “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 €600m 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.”

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