Neinor Homes announces that it successfully completed the voluntary tender offer for the repurchase of its Green Bond and decided to increase its offer to €130 million, versus the €100 million initially expected. The offer closed at an average price of 94.58%, representing a Yield-to-Maturity of 6.2%.

Considering the repurchases executed at market for a nominal value of 27 million euros, Neinor was able to repurchase a total of 157 million euros, 52% of the total issue, the purpose of which is to cancel debt.

Together, these operations will generate financial savings of 38 million euros between the implicit capital gains from the discount and the reduction of interest expenses until 2026.

In addition, with the interest rate caps acquired in 2022, Neinor is able to cover 100% of the interest rate risk of its development business until 2026 and, as of today with the Euribor rate at 3.725%, this allows it to increase its financial gains to approximately 50 million euros.

Neinor Homes expects to settle the repurchase transaction next Monday and will use its strong cash position, which stood at 201 million euros at the end of 2022. Thanks to the discount at which it was executed, this transaction will reduce the reported adjusted net debt by €7 million, representing -2% and an LTV of 18.6%. It is important to show  that, following these adjustments to its debt structure, Neinor Homes faces no corporate refinancing or interest rate risks until 2026.