Metrovacesa agrees with eleven entities to refinance its corporate loan for 260 million

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The real estate developer Metrovacesa has signed an agreement with eleven financial entities to refinance your corporate debt. Thus, the company increases the amount up to 260 million euros and it extends the maturity until July 2026, whereas previously it was established until December 2022.

According to the real estate company, the objectives pursued with this refinancing, which occurs 17 months before the expiration of the previous corporate debt, are to “anticipate the Business growth, optimize the long-term financial cost and diversify the sources of financing available ”.

Metrovacesa will allocate the funds obtained to investment in urbanization, the financing of the start of sustainable developments with proven commercial interest, subject to turnkey agreements with institutional investors, the temporary financing of sustainable projects with commercial progress until the financing is signed. corresponding developer, or specific purchases of land, among others.

This sustainable financial operation has been led by BBVA, Deustche Bank and Santander. The three entities have acted as global coordinators, bookrunner and sustainable coordinators. The refinancing has also attracted great interest from the financial community. Thus, in total, five national entities (BBVA, Kutxabank, Sabadell, Santander and Unicaja) and six international entities (Deustche Bank, Goldman Sachs, MoraBanc, Morgan Stanley, Novobanco and Société Générale) participated.

Bond issue

This operation, together with the issuance of bonds that Metrovacesa announced last May for the amount of 30 million euros and with a term of five years, “it covers its financing needs foreseen for the next five years,” explains the promoter.

The terms of the operation allow Metrovacesa to execute its business plan with high flexibility. Also, in terms of cost, the operation was signed with an initial annual interest of 3.35%, the lowest of the refinancing operations recently closed in the sector.

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Results

The promoter Metrovacesa recorded losses of 2.2 million euros in the first six months of 2021, which represents a decrease of 97% compared to the ‘red numbers’ recorded in the same period of 2020. On the other hand, the company achieved a positive gross operating result (Ebitda) of 8.2 million euros, compared to negative data of 8.1 million euros for the first half of 2020.

In the first half of the year, the real estate company achieved a recurring profit before tax of three million euros, compared to the negative figure of 14.4 million euros a year earlier. In this sense, the company has highlighted the “very significant” improvement in net income.

What’s more, Metrovacesa recorded revenues of 187.4 million euros, which represents a growth of 286% compared to the first half of 2020. While its gross margin rose to 31.3 million, with a significant improvement in the gross promotion margin, which reached 21.5% in the second quarter compared to 16.2% the previous year.

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