Pan-European residential real estate firm Heimstaden Bostad, active in nine countries, has seen the markets react positively to its offer to buy back hybrid bonds.
Heimstaden Bostad elected to buy back €868 mln of bonds, in a series of transactions which were fully financed by SEK 6,885 mln (€649 mln) of equity raised from existing shareholders.
'We are pleased to see the positive response from our bondholders, acknowledging that we are early out making liquidity for hybrids. Replacement of hybrids with new equity improves financial metrics and is a statement of our owners’ commitment to the company,' sais Arve Regland, chief financial officer at Heimstaden.
The bonds were repurchased in five different deals with reset dates ranging from February 2025 to January 2028.
Deutsche Bank and BNP Paribas acted as dealer managers and Kroll Issuer Services as tender agent.
Following a period of rapid growth, Heimstaden Bostad currently owns around 150,000 homes with a property value of SEK 316 bn.
