Swedish listed property group Kungsleden has refinanced an existing syndicated bank facility of SEK 4.5 bn (€500 mln) and received SEK 2 bn (€220 mln) in additional credit lines.

Swedish listed property group Kungsleden has refinanced an existing syndicated bank facility of SEK 4.5 bn (€500 mln) and received SEK 2 bn (€220 mln) in additional credit lines.

The new five-year facility extends the loan's maturity from January 2015 to June 2019 and reduces Kungsleden's cost of debt to 5.1%, the company said in a statement.

Furthermore, Kungsleden has been granted an additional SEK 2 bn in committed credit lines with a three-year duration, maturing in June 2017. Kungsleden said the facility will be used to fund property acquisitions and investments into the existing property portfolio.

In total, Kungsleden has secured bank financing of SEK 6.5 bn with an annual reduction in the cost of debt (including fees for the increased committted amount) of close to SEK 22 mln. As a result of the refinancing, the average maturity of Kungsleden's overall borrowings will increase to 3.1 years from 2.1 years as per March 31.

The lenders in the credit facility are Danske Bank, Nordea, Skandinaviska Enskilda Banken and Swedbank with Skandinaviska Enskilda Banken acting as Facility and Security Agent.

'With this financing exercise, Kungsleden achieves several interim targets included in its financial strategy. We extend the average duration of our borrowings, we achieve a more balanced maturity profile, and we reduce the cost of debt significantly six months ahead of time,' said Anders Kvist, deputy managing director and CFO of Kungsleden.