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Immofinanz refinances €1.6bn of debt in 2017

Average financing costs, excluding derivatives, equalled 2.05% by the end of September.

Immofinanz, the Austrian property developer, has refinanced around €1.6 billion of debt this year, representing 60 percent of the group’s financial liabilities by end of September.

The debt facilities, including a €414 million loan to Stop Shop retail parks in eight countries and a €205 million debt facility for an office property portfolio in Warsaw, will reduce the firm’s future interest cost by around €18.3 million per year, Immofinanz said.

The developer also noted that refinancings and repayments reduced the volume of outstanding bonds to around €330 million, from €628.5 million by the end of last year.

The net loan-to-value ratio of the firm’s debt equalled 42.3 percent by the end of September, compared with 49 percent by the end of 2016.

Average financing costs, excluding derivatives, equalled 2.05 percent by the end of September, while around two-thirds of Immofinanz’s financial liabilities carry fixed interest rates or are hedged against interest rate fluctuations, the firm noted.

“We successfully utilised the currently very attractive interest rate environment and also significantly improved our credit profile with the refinancing arranged to date,” said Stefan Schönauer, chief financial officer of Immofinanz.

“The substantial reduction in financing costs will also contribute more than €18 million to our sustainable funds for operations in the future. In addition, our plans include further optimisation steps in 2018.”