The property developer Neinor Homes has expanded to 130 million euros the partial repurchase offer of its green bondcompared to the 100 million euros initially committed, which will further reduce your debt after the amortization of this new amount.
The promoter has informed the National Securities Market Commission (CNMV) that this operation has already been completed, the settlement of which is scheduled to take place next Monday, March 6. The offer closed at an average price of 94.58%, which represents a ‘Yield-to-Maturity’ of 6.2%.
After the cancellation and amortization of the bonds acquired within the framework of this repurchase offer -together with those acquired by the company until February 22, 2023 in bilateral operations for another 27 million euros-, bonds will remain pending amortization for a nominal amount aggregate of 142.7 million euros.
Together, these operations will generate financial savings of 38 million euros between the implicit capital gains from the discount and reduction of interest expenses until 2026.
In addition, with the interest rate limits acquired in 2022, Neinor will cover 100% of the rate risk in its developer business until 2026 and, with the current Euribor rate at 3.725%, it will increase its financial savings to approximately 50 million euros. .
As of December 2022, the company’s cash position stood at 201 million euros and with a debt ratio with respect to the value of its assets (LTV) of 19%which now stands at 18.6%, after reducing the debt by 7 million euros, 2%.
“Throughout 2022 we seek to optimize, protect and adjust our balance sheet to a higher interest rate scenario. With the closing of this transaction, Neinor ensures a additional profit over the next few years of up to 50 million euros“, has pointed out the deputy CEO and chief financial officer, Jordi Argemí.
