Avalmadrid and Zintra Capital Credit have formalized an amendment to their collaboration agreement, in effect since January 2022, by which they add a new financing line: mortgage-backed loans, originated by Zintra Capital and guaranteed by Avalmadrid, aimed at meeting the investment needs of the member-participants of the entity.
Key points of the amendment:
- Financial guarantee: Avalmadrid will guarantee each loan jointly and severally, with a maximum amount of €1,750,000 per member-participant, covering between 50% and 80% of the financed amount, always at risk shared with Zintra Capital.
- Loan terms: the new loans will have a maximum term of 7 years, a maximum LTV of 70%, and up to two and a half years of grace, with the possibility of structuring as a balloon loan.
- Shared guarantee in equal rank: the operations will be secured through separate mortgages in favor of each entity, established simultaneously and with no priority between them, reinforcing the legal security of the financing.
- Continuity of collaboration: this amendment extends the 2022 agreement between the two entities, which had already allowed Avalmadrid’s member-participants to access financing through promissory notes via a first amendment signed in March of this year.
“With this amendment we take another step in our commitment to bringing Madrid-based SMEs and self-employed professionals closer to financing sources that complement traditional banking. Incorporating mortgage guarantees into our collaboration with Zintra Capital enables us to respond to investment needs that until now we could not cover with the same agility,” said Lorenzo Alonso Felipe, CEO of Avalmadrid.
Meanwhile, José Corral Vallespín, CEO of Zintra Capital, highlighted “that this agreement will facilitate the development and growth of Madrid-based companies through long-term financing with flexible amortization structures, tailored to the particular needs of each company and complementing their traditional bank financing.”
