Heimstaden Bostad sells SEK 4.5 billion of fixed-rate notes and floaters in three tranches

By William Gullotti

Buffalo, N.Y., Nov. 17 – Heimstaden Bostad AB issued SEK 4.5 billion of senior fixed- and floating-rate bonds due in two and five years, according to a notice on Wednesday.

The two year bond is split into two tranches. The first bears a 0.933% fixed coupon, and the second carries a floating rate of Stibor plus 60 basis points.

The five year bond carries a floating rate of Stibor plus 110 bps.

Danske Bank, Nordea, Svenska Handelsbanken and Swedbank acted as joint bookrunners for the offering.

Proceeds will be used to reduce commitments under the bridge facility provided in connection with the acquisition of Akelius’ properties in Germany, Sweden and Denmark, and for the repayment of short-term debt.

In connection with the issue, Heimstaden Bostad bought back SEK 1,528,000,000 in senior bond debt maturing in 2022.

The bonds will be listed on Euronext Dublin, where the final terms will be published, including the breakdown on the tranches.

The residential property company is based in Sweden.

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