Heimstaden Bostad AB yesterday successfully priced its inaugural Green senior unsecured bond (“Green bond”) with a notional amount of SEK 1,200 million. In connection with the transaction, a NOK senior unsecured bond was also priced with a notional amount of NOK 800 million. Both bonds were offered with fixed and floating rate coupons maturing in February 2025. The transaction attracted significant interest among investors and was heavily oversubscribed.

The proceeds from the Green bond issuance will be used in accordance with Heimstaden Bostad’s Green Bond Framework dated October 2019, which has received a Medium Green label by CICERO Shades of Green.

The Green bond consists of two tranches, one carrying a floating rate with annual coupon of 3 months STIBOR plus 130 bps and the other carrying a fixed rate with an annual coupon of 1.368%. The NOK senior unsecured bond also consists of two tranches carrying a floating rate coupon of 3 months NIBOR plus 135 bps and a fixed rate coupon of 2.019%, respectively.

Commenting on the transaction, CFO Arve Regland said:
“Heimstaden Bostad creates value by investing with an evergreen perspective and sustainability is an important part of this strategy. We are therefore pleased at the strong demand we received for our first green bond, which is a confirmation of our ambitious sustainability efforts. The funds from this issuance will contribute to ongoing investments such as, energy efficient buildings, renewable energy and clean transportation.”

In conjunction with the new issues, Heimstaden Bostad offered buybacks of outstanding bonds due 7 December 2020.

An application will be made for the SEK denominated green bond to be listed on Euronext Dublin and the NOK bond to be listed on Oslo Børs. The Final Terms will be made available on Euronext Dublin, Oslo Børs and www.heimstadenbostad.com along with the EMTN base prospectus and any supplements.

Danske Bank acted as green structuring advisor for the Green Bond Framework. Danske Bank, DNB Bank, Nordea and Swedbank acted as joint bookrunners for the bond issue.