Stockholm-listed Klövern has become the first Swedish property company to issue a secured bond to finance an investment portfolio.
Stockholm-listed Klövern has become the first Swedish property company to issue a secured bond to finance an investment portfolio.
Catella, which advised on the process, predicts it is the first of many secured bond issues. The SEK 700 mln (€84 mln) bond has a variable Stockholm Interbank Offered Rate (STIBOR) plus 300 basis points with maturity due in April 2018.
The proceeds will be used to finance a portfolio of investment properties in Karlstad, Sweden, with a total market value of approximately SEK 1.1 bn. Klövern will apply for the bond to be listed on NASDAQ OMX Stockholm.
'We are proud to be the first company in the Swedish market to issue a secured bond loan to finance a portfolio of investment properties. The interest in the bond has been strong and therefore the arranger decided to close the book in advance', said Rutger Arnhult, CEO of Klövern.
Klövern appointed Catella as lead manager, bookrunner and advisor in connection with the bond issue. The legal advisor is Mannheimer Swartling Advokatbyrå.
Catella’s fixed income team and corporate finance team in Stockholm worked on the bond issue.
'Catella believes that this is the first of many issues like this and sees this as a clear sign that the financing possibilities we’ve predicted are now becoming available,' said Anders Palmgren, head of Catella's corporate finance operations.
The potential for further bond issues will be one of the subjects discussed during PropertyEU's Nordic Investment Briefing in London on Wednesday morning. (27 March).
