Azora secures €640m loan for Spanish residential rental platform
Summary
Azora has agreed a 640 million financing package with a group of banks and insurers for its Spanish affordable residential rental platform, Nestar.The syndicated mortgage loan attracted a range of well know international and Spanish domestic institutions comprising Natixis CIB, Banco Santander, Cr\xe9dit Agricole, ING, Deutsche Bank and Banco Pichincha Espa\xf1a.This new financing package allows Nestar to extend its existing debt maturities and provides capex for an ambitious upgrade programme across its 8,600 unit portfolio through improving existing assets.The package also includes a 40 million green loan to fund the acquisition of new sustainable and energy efficient homes that meet certain ESG standards.The financing agreement has a maturity of five years (October 2028) and is benchmarked to 3- month Euribor plus a spread of 175 basis points. The principal will be repaid in a single payment on the maturity date and interest will be payable quarterly.The operation includes hedging instruments to protect the company against any rise in interest rates over the next five years. In the transaction, Natixis CIB Bank acted as Agent and Sole Global Coordinator and, together with Cr\xe8dit Agricole, as Joint Bookrunner. Both Natixis CIB and Cr\xe8dit Agricole act as Green Loan Co-Coordinators.Concha Osacar, founding partner of Azora: The signing of this agreement allows us to shield the company from possible financial risks in the next five years and carry out the strategic plan of our affordable residential rental platform. For us, it is another recognition by the banks of our capacity as managers of rental housing in Spain.Click here to receive CRE Heralds weekly newsletter, news alerts and insights!
Funding
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