Neinor Homes has obtained a new €165 million three-year term loan and restructured its existing corporate debt of €140 million, thereby extending its maturity for an additional year. The financial cost of this operation remains at similar levels to those agreed in April 2023 and is secured by a financial derivative established in 2022.
As a result of this transaction, Neinor's total debt has increased by €25 million, but the company has the option to increase it by a further €35 million up to a limit of €200 million.
The financing was structured through a club deal, with the participation of renowned banks such as Banco Santander, BBVA, JP Morgan and the addition of Société Générale, showing the interest of both Spanish and international banks.
Neinor to invest €1 billion by 2027
Regarding expectations for 2024 and 2025, Neinor foresees a favourable environment in the real estate sector, driven by strong demand and limited supply of new construction. This situation, together with the low level of indebtedness of Spanish households, has contributed to the strength of the construction sector in a context of rising interest rates and high macroeconomic uncertainty.
Against this backdrop, Neinor plans to accelerate its investments over the next two years to continue its capital-efficient growth. According to its 2023-27 business plan, the company plans to invest €1 billion, with half of this sum earmarked for joint projects with new strategic partners and through its co-investment division. To date, Neinor has already secured co-investment agreements worth €300 million, reaching 60% of its five-year target.
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, said: "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.
