Vía Célere reinforces its solvency by reducing debt by 216 million euros in 2020
· January 18, 2021 | Expansión
- The developer has also reduced debt with the repayment of 16 million euros of other land loans and lines of credit.
- These figures do not take into account the amortization of developer loans associated with the delivery of homes.
- The developer enjoyed strong liquidity at the end of 2020, with a cash flow position of 140 million euros, with which it can cover all maturities in 2021 and achieve wide-ranging access to bank finance and capital markets.
Via Célere, developer specialized in the development, investment, and management of real estate assets, has reinforced its financial solvency in 2020 with the reduction of its corporate debt by 216 million euros. This figure has been divided into the repayment of a syndicated loan of 150 million euros, as well as corporate lines of credit from Banco Santander for an amount of 50 million euros and the repayment of 16 million euros in land loans and loan policies. These figures do not consider the amortization of developer loans associated with the delivery of homes.
Likewise, the developer also ended 2020 with strong liquidity, having a cash position, as of December 31, 2020, of 140 million euros. In this way, Vía Célere has already covered extensively, all its forthcoming maturities for 2021 and can guarantee wide-reaching access to bank finance and capital markets.
“This decision to significantly reduce debt as well as the operation to deliver almost 2,000 homes built in 2020, shows Vía Célere's deleveraging and cash generation capacity and places us in an unbeatable position to continue the path of responsible and sustainable growth outlined in our strategic plan" assures José Ignacio Morales Plaza, CEO of Vía Célere.
In addition, the manager stated: "The diversification of financing sources in the development business is, without a doubt, one of the most relevant strategic keys for residential developers. At Via Célere we have been a year and a half exploring different alternatives in the banking, direct lending and capital markets and we are very satisfied with all the decisions we have made. We will not only continue to innovate at the operational level, but we will also do so in the financial area”.
Debt refinancing and the first company to take the leap with MARF after covid-19 (put h2)
In 2020, Vía Célere reached several milestones that further strengthened its financial strength. In this sense, the developer established a novation agreement for a syndicated loan of 193 million euros, extending its maturity until the end of 2021. In addition, the novation was carried out ahead of schedule - in June 2020 - which demonstrated the enormous confidence of the financial sector in the developer.
On the other hand Vía Célere was also the first company to join the Alternative Fixed Income Market(MARF) after Covid-19 with the launch of a promissory note program for a maximum amount of 100 million euros. These promissory notes will have a minimum amount of 100,000 euros and their issuance terms will be between three days and two years.
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