Catella advisor in the first property-secured bond loan in Sweden (SE)

Catella has acted as advisor in connection with Klövern AB’s (publ) first property-secured bond issue to a selected group of institutional investors. The total issue volume is SEK 700 million (€83 million).

The bond is secured by properties in Karlstad, Sweden and the total bond volume is SEK 700 million (€83 million), with a coupon of STIBOR + 300 interest points and a tenor of five years. Klövern will apply for listing of the note on NASDAQ OMX.

“We are proud to be the first issuing house on the Swedish market which structures a bond loan secured by an underlying property portfolio. There has been very great interest in the bond and I believe that interest in this type of note will increase in the future. It provides a fantastic risk-adjusted return,” says Anna Ringby, Head of Nordic Fixed Income.

“This transaction demonstrates Catella’s unique combined expertise within real estate and financing, which no other player on the Swedish market possesses. We believe that this is the beginning of a new market and that this transaction is the first of many to come,” says Anders Palmgren, Head of Corporate Finance.

Klövern AB is one of the largest property companies in Sweden, focusing on commercial properties in selected growth regions in Southern, Eastern and Central Sweden. In December 2012 the property portfolio comprised 387 properties with a total value of SEK 22.6 billion (approx. €2.7 billion). The Klövern share is listed on NASDAQ OMX Stockholm Mid Cap.

Catella’s Nordic Fixed Income has acted as Lead Manager and Bookrunner to Klövern, while Catella’s Corporate Finance team has acted as advisor to Klövern.

Catella is a leading corporate finance advisor in the European commercial real estate sector. Our Fixed Income operations offer Nordic companies financing solutions via the bond market as alternatives to bank loans and equity. Catella’s corporate finance operations are established in 11 countries, including the UK, with more than 200 employees.

Source: Catella

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