NSI agrees € 50 million sustainability-linked Term Loan

NSI N.V. has amended and extended its term loan with ABN Amro, Rabobank, ING and Belfius. In the amended agreement the Term Loan’s maturity is set for a new 4-year term and now also includes a sustainability-linked interest margin mechanism.

The amount of the amended facility is €50m, decreased from €80m originally, and has been extended to December 2026. NSI remains comfortable with its liquidity position, especially considering its €300m mostly undrawn RCF.

The amended agreement includes a sustainability-linked mechanism through which the interest margin will be adjusted based on our performance on four indicators: an energy intensity reduction target in line with the CRREM¹ decarbonisation pathway, the percentage of the portfolio that is aligned with the EU Taxonomy, the average BREEAM score of our portfolio, and the company’s GRESB rating.

With this extension NSI’s average debt maturity increases to 4.7 years up from 4.2 years as per Q3 2022. The average cost of debt will remain stable at 2% per year-end 2022, given current hedging, but is expected to increase to circa 3% by year-end 2023. With an LTV of 27.8% as per Q3 2022, limited upcoming debt maturities (€66 million maturing in June 2023) and no further maturities until December 2026, NSI remains in a solid financial position.

Alianne de Jong, CFO: “the successful completion of this financing in the current volatile environment is testament to the strength of NSI’s balance sheet, portfolio and the longstanding relationship with our funding partners. The inclusion of the sustainability-linked mechanism aligns with NSI’s conviction that a more sustainable portfolio is vital to the business’ long-term financial viability and performance. ”

NSI was advised by Van Lanschot Kempen Investment Banking and NautaDutilh.

^{1. Carbon Risk Real Estate Monitor}