The bond will be accounted for as 100 percent equity by Heimstaden in accordance with IFRS. Fitch is expected to classify the bond as having 50 percent equity content and to assign a ‘BB-’ rating to the issue.
The proceeds will be used for general corporate purposes and to reduce the commitments under Heimstaden’s bridge financing facility.
The offering attracted strong interest from a broad institutional base with a book of more than two times the notional amount at final price.
An application will be made for the bond to be listed on Nasdaq Stockholm. The final listing particulars, once published, will be made available on
corporate.heimstaden.com.
Artic Securities, Citigroup, Nordea, J.P. Morgan and Swedbank acted as Joint Bookrunners for the issue.