Neinor Homes has successfully completed the voluntary tender offer for its Green Bond and that it has decided to upsize its Green Bond buyback to €130m from the €100m initially foreseen. The auction was closed at an average price of 94.58% which represents a Yield-to-Maturity of 6.2%. Considering the bond buybacks for a nominal value of €27m, Neinor has been able to buyback a total of €157m, which corresponds to 52% of the total issuance. Together these transactions will generate financial savings of €38m in capital gains, due to the implicit discount, and a reduction in financial expenses up until 2026.
The buyback settlement date will take place next Monday and Neinor will fund it with its solid cash position; as of December 2022, Neinor’s available cash position stood at €201m. Thanks to the aforementioned discount, Neinor shall reduce its adjusted net debt position by 2% and the LTV will stay at 18.6%. Following these adjustments on its debt structure, Neinor is fully protected from both refinancing and interest rate risk until 2026.
Jordi Argemí, Deputy CEO and CFO of Neinor said:“Throughout 2022, we have tried to optimise, protect and adjust our balance sheet to higher interest rates. With the closing of this tender offer, Neinor guarantees an additional net income of up to €50m to be realised over the coming years”.