The Emisión de Bonos INSUR Senior Secured 2021 bond issue has an annual coupon rate of 4% and maturity in 2026. It was registered by Grupo INSUR through its subsidiary INSUR PROMOCIÓN INTEGRAL, S.L.U., which intends to use the resultant revenue to finance its growth through the acquisition of land and plots for its development activity. Bestinver Sociedad de Valores, S.A. participated in the transaction as sole leader arranger and placement.
Zurbarán Abogados acted as legal advisor to Grupo INSUR. During the transaction, the team appointed Bondholders, S.L. as commissioner of the syndicate of bondholders, GVC Gaesco Valores, S.V., S.A. as the issue’s regis and Bankinter, S.A. as payment agent. Bestinver was advised by Cuatrecasas.
Lawyer Monthly had the pleasure to speak with Ricardo Astorga Morano, Partner at Zurbarán Abogados to give us some further insight into this transaction:
Can you tell us more about your team’s role in the deal and the expertise that they applied?
Our team’s role has been essential. We have designed and produced innovative deal documents that were crucial to get the clearance from the regulator and the rest of the top-tier players involved in the deal.
Did you have to overcome any significant challenges during the transaction?
We have issued a bond that is a brand-new way of raising capital, as the collateral assets weren’t picked out before the issuance, an this is highly unusual in the real estate industry. In order to get the deal done, we have produced a system of guarantees that match up very well with the traditional real estate financing.
What impact do you expect this transaction will have?
We expect that the issuance of this bond becomes the new market practice of the real estate industry in Spain.
