Aedas Homes is following in the footsteps of Vía Célere and Neinor Homes and is preparing to launch a green bond issue. The developer has hired Goldman Sachs, which in this operation has Baker & McKenzie as legal advisor, according to different sources in the sector confirmed.
With this issue, the developer headed by David Martínez will further consolidate the diversification of its debt, since to date the firm’s liabilities had little dependence on a specific type of financing. Thus, according to the company’s accounts at the end of June, the developer’s gross financial debt stood at $515 million (€430.8 million), distributed mainly in $237.8 million (€198.99 million) in bank loans (with mortgage guarantee, which are those destined to finance the work in progress), $277.2 million (€231.9 million) in corporate loans and $53 million (€44.28 million) in the outstanding balance of the promissory note issue.
“This financial debt situation shows a diversification between different financing channels on the one hand and between different financial institutions on the other, avoiding the concentration of financial risk,” the company notes in its accounts.
The green bond issue, which according to the same sources could be ready by the end of May or the beginning of June, does not respond to an urgent financing need of the developer, since it does not have significant maturities in the short term and also had a very optimized cost of debt at the end of 2020, 2.71%, as reflected in the CNMV.
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Other operations by Aedas Homes
The operation of Aedas Homes will be the third of this type that is carried out in the promoter sector in Spain, since almost a month ago, specifically on March 18th, Vía Célere became the first firm in issuing a green high yield bond of $358.6 million (€300 million) to five years and with a final coupon of 5.25%.
The developer will use the funds to finance the construction of energy-efficient residential buildings, in accordance with the green bond eligibility criteria, which require these developments to be among the 15% most energy-efficient in the domestic market.
On the other hand, this same week Neinor has also announced its first issue of senior secured green bonds maturing in 2026 for $358.6 million (€300 million). Neinor intends to use the funds raised to repay $189 million (€158 million) of Quabit Inmobiliaria’s debt; to repay $120.7 million (€101 million) of debt of Neinor itself and its subsidiaries; to make capital investments in the rental division, and to pay fees and commissions on the issue itself. In addition, “an amount equivalent to the net proceeds will be allocated to eligible green projects”.
So far this year, Spanish companies have issued $6.73 billion (€5.63 billion) in green and sustainable bonds. The largest placements have come from Iberdrola, Telefónica, and CaixaBank.
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First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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