Neinor Homes has increased its green bond by €100 million through a private placement among institutional investors. With this transaction, the developer raises the total amount of the issue, maturing in February 2030, to €425 million.
According to the terms communicated to the market, the increase was closed at a price of 102.75% and with an implied yield of close to 4.9%, lower than that of the original issue. The funds obtained will be used for general corporate purposes, including the partial financing of the voluntary takeover bid (OPA) for AEDAS Homes. The company expects the settlement of this transaction to take place slightly earlier than initially planned. In addition, Neinor Homes will allocate an amount equivalent to 100% of the funds raised to eligible green projects.
This increase is in addition to the issue made by Neinor in November 2024, when the company closed its second bond placement for €325 million, with a maturity of 5.25 years until 2030 and a cost of 5.875%. That transaction reduced the overall cost of debt by 62.5 basis points and obtained a BB- rating from Fitch and Standard & Poor's, while Neinor's corporate rating remains at B+.
Deutsche Bank and Société Générale acted as lead coordinators for the placement, while Banco Santander, Citibank and J.P. Morgan participated as placement agents. In the twelve months to June, housing transactions increased by 8.5%, while the number of completed homes fell by 5.1%, according to industry data. The formation of new households in Spain stands at between 150,000 and 250,000 per year, well above the current housing supply, estimated at around 100,000 units per year.
The economic context remains favourable. According to the Bloomberg consensus, Spanish GDP will grow by 2.7% in 2025 and 2.0% in 2026, figures higher than those for the eurozone, which stand at 1.3% and 1.1%, respectively.
