Highlights

• Neinor Homes taps €100 million Green Bond to fund AEDAS Homes acquisition.
• Spanish housing market is experiencing rising demand with limited new home supply.
• Green bond proceeds will support eligible green projects under the 2024 framework.

Neinor Homes, a leading Spanish homebuilder, has added another €100 million to its €325 million Green Bond that matures in February 2030.

The tap issuance was completed through a private placement to institutional investors and was priced at 102.75%, which represents an implied yield of 4.9%. This is lower than the original issuance and helps optimise the overall cost of debt.

The net proceeds from this green bond issuance will be used for general corporate activities, including partial funding of the voluntary tender offer for AEDAS Homes. The settlement of this transaction may occur slightly ahead of expectations.

Read More: Emerging Markets Drive Green Bond Resilience in 2025

Neinor Homes has committed to investing an amount equivalent to 100% of the proceeds in Eligible Green Projects, as defined in its 2024 Sustainable Financing Framework. The move is pursuant to the company’s equity-efficient growth strategy and its shareholder remuneration policy.

Spain’s housing market shows relentless demand, even as the supply of new homes is limited.

The Spanish economy, says Bloomberg Consensus, is projected to grow by 2.7% in 2025 and 2.0% in 2026, supported by employment trends and private consumption. Total housing transactions rose by 8.5% in the year to June, whereas newly completed homes fell by 5.1%.

The estimated annual supply of around 100,000 homes is below net new household formation, which ranges between 150,000 and 250,000 homes per year. Also, declining interest rates over the past year have reduced mortgage costs, which improved housing affordability, particularly for mid-to-high segment buyers.

Borja García-Egotxeaga, CEO of Neinor Homes, said the previous green bond issuance helped refinance the debt structure, providing more financial flexibility and efficient capital allocation. The company has returned €155 million to shareholders and is progressing with the AEDAS transaction.

Also Read: What Are ESG Bonds? Benefits & Future of Green Investing

Meantime, Jordi Argemí, Deputy CEO and CFO, said that access to public credit markets enabled the company to pursue the largest M&A transaction in Spain’s residential sector in over a decade. The transaction is expected to generate substantial cash flows, while financial discipline and careful capital allocation remain a priority.

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Source: Neinor