CriteriaCaixa Secures Syndicated Loan of €1.65 Billion to Finance Strategic Investments

CriteriaCaixa, the investment arm of the La Caixa Foundation, has successfully secured a syndicated loan of €1.65 billion from the financial sector to support its new strategic investment plan. The loan, which involved the participation of over 20 banks, will enable CriteriaCaixa to finance its strategy in companies like Telefónica, ACS, and Colonial.

Unlocking Opportunities: CriteriaCaixa's Strategic Financing Moves

Syndicated Loan: A Resounding Success

The syndication process for the loan was highly oversubscribed, with requests exceeding €4.65 billion, a 2.9 times oversubscription. This overwhelming response from the banking sector underscores the confidence in CriteriaCaixa's investment strategy and its ability to capitalize on market opportunities.

Loan Structure: Flexibility and Refinancing Options

The loan is structured in two tranches. The first tranche is a €1.15 billion bridge loan with a one-year maturity, extendable by two additional six-month periods. This flexibility allows CriteriaCaixa to refinance the bridge loan through the bond market, should market conditions be favorable.The second tranche is a €500 million credit facility with a three-year maturity, with an option to extend it by an additional year. This combination of short-term and medium-term financing provides CriteriaCaixa with the necessary liquidity and financial agility to capitalize on investment opportunities as they arise.

Diverse Banking Consortium: A Collaborative Effort

The syndicated loan was coordinated and underwritten by Société Générale, which acted as the bookrunner. The participating banks include Banco Santander, Bank of America, Barclays, BBVA, BNP, Credit Agricole, Goldman Sachs, HSBC, Intesa Sanpaolo, JP Morgan, MedioBanca, Natixis, Unicredit, and Sumitomo, among others. The lead arrangers were Banco Sabadell, Banco Cooperativo, Bankinter, CecaBank, Deutsche Bank, Ibercaja, KutxaBank, and Unicaja.

Financing Strategic Investments

The syndicated loan will enable CriteriaCaixa to finance the investment opportunities it has pursued during the first half of 2024, particularly the acquisitions of new stakes in Telefónica, ACS, and Colonial. This financing solution not only provides the necessary funds but also enhances CriteriaCaixa's financial flexibility, allowing it to capitalize on emerging market opportunities in the second half of the year.

Strengthening Liquidity and Financial Agility

The successful syndication of the loan ensures that CriteriaCaixa enters the second half of the year with comfortable liquidity levels and greater financial flexibility. This positions the holding company to effectively navigate the market and seize new investment prospects that may arise, further solidifying its strategic positioning.