Supporting the sustainable development of residential housing in Spain

Neinor Homes, a leading listed residential property developer in Spain, has successfully issued its second green bond, bringing to 325 million euros the proceeds the company will be able to invest in green projects that will step up its contribution to Sustainable Development Goals. Societe Generale acted as Global Coordinator & Bookrunner as well as Green Structuring Bank in the deal. 

The company intends to allocate 175 million euros to repay its existing corporate debt facilities and to increase its corporate debt by an additional 150 million euros, to fund new growth opportunities that may arise in the future, either through Neinor’s own acquisition program or partnerships with co-investors. 

100% of the bond net proceeds in Eligible Green Projects

Neinor Homes has pledged that it will invest an amount equivalent to 100% of the bond net proceeds in Eligible Green Projects as defined in its Sustainable Financing Framework, aligned with the European Taxonomy for Green Buildings. These projects will foster sustainability through a reduction of the carbon footprint of the buildings during the construction phase and best in class energy efficiency standards to lower life-cycle emissions. Moreover, some of the projects will also fulfil social goals by increasing supply both for rental and for sale in a market where there is a structural housing deficit, namely on affordable housing and social housing. 

Societe Generale acted as Global Coordinator & Bookrunner as well as Green Structuring Bank in the deal. 

“We are very pleased with the outcome of this issuance where institutional investors have, once again, backed up the company reflecting the trust on our execution capacity, financial discipline and vision to anticipate investment cycles in the Spanish residential market”, explains Borja Garía-Egoetxeaga, CEO of Neinor Homes. 

“We are thrilled with the strong investor demand witnessed on this issuance, which reinforces the confidence on the management team and has allowed the company to improve the quality of its corporate debt with a lower cost and extending maturities. Furthermore, this issuance will play a critical role in the execution of Neinor’s strategic plan as it will allow us to continue to accelerate execution on equity efficient growth and shareholder remuneration”, explains Jordi Argemí, Deputy CEO and CFO, stated.

“We are proud to accompany Neinor Homes and contribute to foster sustainability. This transaction, prepared and executed in record time thanks to the collective efforts of our teams is an example of our commitment to our clients and reinforces our relationship with the company”, explains Arturo Alonso, Senior Banker at Societe Generale.