Neinor Homes has closed a financing agreement with the international financial company JP Morgan in the form of a EUR 150m bridge loan. As the company submitted to the CNMV (the Spanish stock regulator) in a relevant fact, communicating the closing of the financing agreement, this amount will be used to purchase land for the next new housing developments in Spain.

The signing of this agreement allows Neinor Homes to anticipate its land acquisition program, scheduled for 2018, to the last quarter of 2017, taking advantage of its privileged origination and execution capacity and the outstanding market momentum in Spain.

In this way, the company will achieve, before the end of this year, a highest quality land bank and significantly larger than expected.

The competitive facility financing conditions (annual all in cost below 450 bps) demonstrate the Company’s strength and the confidence of the financing institutions in Neinor Homes’ execution capacity.

According to its Chief Financial Officer (CFO), Jordi Argemí, this transaction marks another milestone in Neinor Homes’ history and it’s a clear demonstration of the financial institutions support and confidence in the Company's project, leading the real estate development sector in Spain.

"The Company high level of solvency, the quality of our land bank, the excellent team of Neinor Homes and the transparency with which we work, continue to be the key elements to obtain the confidence not only of the Spanish banking, but now also of the international banking”, he explained.

The loan has a maturity of up to 24 months and the Company expects to repay it with the proceeds resulting from the ordinary business. The covenant is Net Debt / GAV under 45% and will be reviewed on a quarterly basis, without any change required to the existing financing arrangements.

Neinor Homes can start deploying this line almost immediately, given the advanced state of the negotiations of a EUR 100m+ pipeline.

In case the facility is completely drawn down in H2 2017 to successfully close land acquisitions of the Company's pipeline and a significant part of these projects are successfully launched, the Company could potentially re-assess Neinor Homes' 2020 run-rate targets.