Heimstaden Bostad launches €600 million tender for five hybrid bonds

By Devika Patel

Knoxville, Tenn., July 11 – Heimstaden Bostad AB announced a tender offer to purchase up to €600 million of hybrid bonds, according to an announcement.

The tender offer is being conducted as an unmodified Dutch auction procedure.

The company is tendering for five series of bonds:

• €800 million of bonds, with a 5.25-year non-call period and a first reset date of Feb. 19, 2025 (ISIN: XS2010037765);

• €500 million of bonds, with a 5.5-year non-call period and a first reset date of April 15, 2026 (ISIN: XS2125121769);

• €800 million of bonds, with a 6.25-year non-call period and a first reset date of May 1, 2027 (ISIN: XS2294155739);

• €600 million of bonds, with a 6.6-year non-call period and a first reset date of Jan. 29, 2028 (ISIN: XS2357357768); and

• €600 million of bonds, with a 5.25-year non-call period and a first reset date of Jan. 13, 2027 (ISIN: XS2397251807).

The tender offer will expire at 11 a.m. ET on July 15 and is expected to settle July 26.

The tender offer is backed by firm equity capital commitments targeted for the tender offer from several existing shareholders up to approximately €600 million.

Heimstaden Bostad will carry out a share issue raising the equivalent amount of equity to the total consideration for the hybrid bonds in the tender offer.

The share issue is subject to completion of the tender offer.

Deutsche Bank and BNP Paribas are the dealer managers.

Kroll Issuer Services is the tender agent.

Heimstaden is a real estate company based in Malmo, Sweden.

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