Sveafastigheter issues EUR 350 million 5.5-year senior unsecured bonds; Fitch expects upgrade to BBB by end of September
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”)) OR IN ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW
Sveafastigheter AB (publ) (“Sveafastigheter”) has today successfully priced a EUR 350 million bond issue. The 5.5-year senior unsecured fixed rate EUR-denominated bonds will mature on 2 March 2032 and pay a fixed coupon of 4.500%.
The bonds will be issued under Sveafastigheter’s existing EUR 2 billion EMTN programme. An application to list the bonds on Global Exchange Market of Euronext Dublin will be made. The proceeds are intended to be used for general corporate purposes including financing in connection with the merger with KlaraBo.
In connection with the bond issue, Fitch Ratings has announced that it has assigned the planned bond an expected rating of BBB- and maintained Sveafastigheter's Long-Term Issuer Default Rating and senior unsecured rating at BBB-, both on Rating Watch Positive. Fitch Ratings further stated that it expects to resolve the Rating Watch Positive and upgrade all ratings to BBB with a Stable Outlook by end-September 2026, provided that Sveafastigheter's 2027 secured debt maturities are extended, the bond is issued, and the merger with KlaraBo is formally completed.
According to Fitch Ratings, the planned bond issue, together with the ongoing extension of secured debt maturities and the completion of the merger with KlaraBo, is expected to strengthen Sveafastigheter's liability profile by extending average debt maturities and increasing financial flexibility.
“The transaction marks our second issuance in the public EUR bond market and continues to diversify our funding sources into the international capital markets. Today's issuance also helps extend our debt maturities and increases our financial flexibility, supporting an upgrade to a BBB rating from Fitch, following the completion of the merger with KlaraBo. It's great to see such strong interest from bondholders reflecting confidence in both Sveafastigheter and the strategic rationale for the merger, which will create a significantly larger and stronger Sveafastigheter and further strengthen our position as Sweden’s largest listed pure-play residential real estate company,” says Erik Hävermark, CEO Sveafastigheter.
Citigroup Global Markets Europe AG is acting as Global Coordinator, Citigroup Global Markets Europe AG and Goldman Sachs Bank Europe SE are acting as Joint Bookrunners.
Goldman Sachs Bank Europe SE, which is authorised and supervised by the European Central Bank and the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht), is acting for Sveafastigheter and no one else in connection with the transaction and will not be responsible to anyone other than Sveafastigheter for providing the protections afforded to clients of Goldman Sachs Bank Europe SE, or for giving advice in connection with the transaction or any matter referred to herein.
The securities to which this announcement relates have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold directly or indirectly within the United States or to, or for the account or benefit of, U.S. persons, as defined in Regulation S under the Securities Act. Nothing in this communication shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. No action has been taken in any jurisdiction that would permit a public offering of the securities to occur in any jurisdiction. A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation. Similar ratings for different types of issuers and on different types of securities do not necessarily mean the same thing. The significance of each rating should be analysed independently from any other rating.
For further information, please contact:
Kristel Eismann, Head of Treasury and IR, ir@sveafastigheter.se
About Sveafastigheter
Sveafastigheter owns, manages and develops people's homes. The property portfolio consists of a wide range of rental apartments in growth regions in Sweden. The buildings are managed and developed with a local presence and commitment. Sveafastigheter develops and builds new sustainable housing where the demand for housing is the greatest.