Tag: bond placement

Colonial to Issue Up to €5 Billion in New Debt

3 January 2020 – The socimi Colonial has communicated its intention to issue up to €5 billion in new bonds to Spain’s National Securities Market Commission (CNMV). The new issue is part of the firm’s strategy to complement its bank financing.

Colonial, which primarily invests in offices for lease had net debts of €4.522 billion as of September of last year. The socimi last issued bonds in November 2017 and April 2018 to finance its takeover bid and subsequent merger with Axiare.

The firm is currently analysing a series of possible new acquisitions, adding to its portfolio of office buildings in Madrid, Barcelona and Paris. The existing portfolio is valued at 11.8 billion euros.

La socimi Colonial ha comunicado su intención de emitir hasta 5.000 millones de euros en nuevos bonos a la Comisión Nacional del Mercado de Valores (CNMV) de España. El nuevo emisión es parte de la estrategia de la empresa para complementar su financiamiento bancario.

Colonial, que invierte principalmente en oficinas para arrendar, tenía deudas netas de 4.522 millones de euros in septiembre de 2019. La socimi emitió bonos por última vez en noviembre de 2017 y abril de 2018 para financiar su oferta de adquisición y posterior fusión con Axiare.

Actualmente, la firma está analizando una serie de posibles nuevas adquisiciones, que se sumarian a su cartera de edificios de oficinas en Madrid, Barcelona y París. La cartera existente está valorada en 11.800 millones de euros.

Original Story: Europa Press

Translation/Summary: Richard D. Turner

Merlin Properties Sounding Market with View to Placing Long-Term €500-Million Bond

30 September 2019 – Merlin Properties is sounding the market to potentially issue a 15-year, approximately €500-million bond. The bond would be the first for the firm with such a long duration.

The socimi is hoping to take advantage of favourable market conditions to restructure its debt. The socimi also placed bonds in 2016 and 2017, in addition to taking out a €1.55 billion loan last April, the largest of its type in Spain.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner

Grupo Ortiz Completes 5-Year Bond Issue Worth €50M

10 July 2018 – Eje Prime

Grupo Ortiz has finalised the placement of bonds worth €50 million with the aim of replacing a previous issue that is due to expire next year. Thanks to this operation, the company will reduce the cost of its debt and extend its maturity period.

The new bonds, subscribed by qualifying investors, are being launched over five years, in such a way that they will expire in 2023. The interest rate on the bonds is 5.25%. The new securities replace those issued for the same total amount in 2014, which are due to expire in 2019 and which generate a cost of the company of 7% per annum.

The new bonds, just like their predecessors, will be admitted for trading on the Alternative Fixed Income Market (MARF). Grupo Ortiz was the third company to launch debt securities on that market.

In 2017, Grupo Ortiz completed a portfolio of building work pending execution worth €6 billion, up by 45% compared to the previous year, boosted by the expansion of its international business, primarily in Latin America. More than two-thirds of the company’s business is generated overseas.

Original story: Eje Prime 

Translation: Carmel Drake

Wimpey Protects Its Homes In Spain From Brexit

28 July 2016 – Expansión

The British real estate company has refinanced its property developments on the coast through the issue of bonds amounting to €100 million.

One of the consequences of the UK referendum, held on 23 June in which Britons voted in favour of Brexit (to exit the European Union), may be a decrease in the volume of house purchases on the Spanish coast by citizens of the United Kingdom, as a result of the depreciation in the pound against the euro and fears about future restrictions over the free movement of people between the two countries.

Taylor Wimpey, the real estate company that has property developments in Andalucía, Alicante and the Baleric Islands, aimed mainly at British buyers, has decided to protect itself against those risks through a debt issue in euros to “hedge its investments in Spain”.

On 28 June, just five days after the referendum, the company completed a private placement of bonds amounting to €100 million with institutional investors, secured by its Spanish assets. The securities pay annual interest of 2.02% and are due to mature in June 2023.

According to market sources, this operation seeks to refinance in euros Taylor Wimpey’s debt associated with its assets in Spain, which amount to €168 million. By having the assets and debt of its Spanish subsidiary denominated in the same currency, the group’s balance sheet is more stable in the face of possible fluctuations in exchange rates in the future.

Currently, Taylor Wimpey has several property developments underway along the Spanish coast, where it has already committed to sell 399 homes.

During the first half of 2016, the firm completed the sale of 53 homes in Spain, at an average price of €342,000. Interestingly, one of these property buyers was Pete Redfern, the CEO of Taylor Wimpey. The chief executive of the group acquired two houses from the Spanish subsidiary, one for €278,000 and the other for €350,250. According to the company, the first home was sold at market price, whilst the other was purchased by Redfern taking advantage of the discount plan offered to employees “under the same terms offered to all other staff”.

Taylor Wimpey’s revenue in Spain between January and June amounted to GBP 14.8 million (€17.6 million), generating an operating profit of GBP 0.3 million. “We hope to continue making progress in the Spanish market during the rest of the year, given the strength of our order book” said the group. “Looking further ahead, we remain cautiously optimistic, given the potential implications of the macroeconomic environment in Europe”.

The company, which besides its business on the Spanish coast, is heavily focused on the United Kingdom, recorded revenues of GBP 1,457 million during H1 2016, up by 9.1%. At the results presentation yesterday, Redfern said that Brexit had not yet affected the group’s sales in the British market.

Original story: Expansión (by Roberto Casado)

Translation: Carmel Drake