Heijmans has reached an agreement in principle with its syndicate of banks, consisting of ABN AMRO, ING and Rabobank, on the amendment and extension of its syndicated loan through to 31 December 2025.
They also agreed to improve and update the financing terms on various fronts, with the inclusion of sustainability linked criteria. Under the new agreements, the banks have committed to an amount of € 117.5 million, of which € 20 million in the form of an overdraft facility.
New performance criteria
The interest rate margin will be calculated on the basis of new performance criteria. As a result, among other things, from the effective date the margin will drop by 0.55% to 1.70%. The margin is also linked to a bonus malus system based on four sustainability linked criteria. In effect, Heijmans is raising its sustainability ambitions by committing to annual improvements in terms of, among other things, CO2 emissions and safety.
The financial covenants have been adjusted to align more effectively with current reporting standards and the standards applied in the construction industry. IFRS 16 Leases in particular has a considerable impact on the figures and the covenant levels have been adjusted where necessary. Finally, the banks re-examined and relaxed the security package.
Addendum with a more detailed description
The arrangements from the agreement in principle will be worked out in more detail and incorporated in new documentation in the second quarter of this year, after which the new terms will become effective. Please see the addendum at the bottom of this page for a more detailed description of the main changes to the financing terms.
Ton Hillen, Heijmans CEO/Chairman of the Executive Board:
“For Heijmans, the past few years have been marked by a recovery in profitability and the improvement of our balance sheet ratios. Our relationship with the banking syndicate has always been constructive even in the difficult years. The tenor of the facility was always relatively short and the financing conditions underlined the importance of operational improvement. Based on Heijmans’ good performance in recent years, with a stable rise in profitability and the resultant net cash position, this refinancing is a clear expression of everyone’s confidence in the future.
Heijmans has its house in order again and these improved terms reflect that. In addition, with these adjusted terms we and our banks stress the importance of our sustainability ambitions. We have now consolidated our primary financing facilities for several years, giving Heijmans a strong financial basis.”