Heimstaden makes record bonds issue

Heimstaden has issued bonds for 10,6 billion SEK. The funds will primarily be used to amortise secured bank debt with a short maturity profile, thus increasing the probability of obtaining an investment grade rating from S&P.

The issuance is a so-called multi-tranche issue, resting on four different legs with maturity times of 2 and 5,5 years. The bonds are euro denominated and Heimstaden has swapped the funds to SEK and NOK.

“We are delighted that Heimstaden Bostad as a first-time issuer has been able to issue a significant amount under challenging market conditions. To the best of our knowledge, it is the largest single issuance of bonds ever made by a Nordic property company. We look forward to becoming a recurrent issuer in the global money markets;” Magnus Nordholm, Deputy CEO of Heimstaden, says.

A couple of weeks ago, it was announced that S&P has assigned BBB- to Heimstaden, the lowest level of investment grade.

Sverrir Thór