Heimstaden Bostad AB has today successfully completed the issue of a EUR 650 million senior unsecured bond under its EMTN programme. The bond has a maturity of 6.5 years and carries a fixed coupon of 1.375% p.a.

The company intends to allocate a share of the proceeds for the repayment of short-term bank loans. Proceeds will also be used to finance the ongoing tender offer to buy back up to EUR 150 million of its outstanding EUR 500 million senior unsecured bond maturing in December 2021. All remaining proceeds will be used for general corporate purposes.

Commenting on the transaction, CFO Arve Regland said:

“We are pleased to see the strong interest in Heimstaden Bostad and continuing support of our long-term strategy. This transaction will further increase our financial flexibility and extend our debt maturity profile.”

This is the first bond issued by Heimstaden Bostad Treasury B.V., a newly established private liability company incorporated in the Netherlands.  

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

Danske Bank, Deutsche Bank, J.P. Morgan, Nordea acted as joint bookrunners for the bond issue.