The real estate developer Neinor Homes has extended the partial repurchase offer for its green bond to 130 million euros, compared to the 100 million euros initially committed, which will allow it to further reduce its 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 begin 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 an aggregate nominal amount of 142.7 million euros.
Together, these operations will generate financial savings of 38 million euros between the capital gains implied by 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 stands at 201 million euros and with a debt to asset value (LTV) ratio of 19%, which now stands at 18.6%, after reducing at 7 million euros, 2%, the debt.
“Throughout 2022 we seek to optimize, protect and adjust our balance sheet to a scenario of higher interest rates. With the closing of this operation, Neinor ensures an 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.
