Aberdeen Property Investors arranges SEK 3 billion Property Derivative Issue

Aberdeen Property Investors (“API”) in conjunction with Barclays Capital, the investment banking division of Barclays Bank PLC, has arranged, structured and is now marketing a SEK 3 billion (€300m/£220m) Swedish Property Index Certificate (“Swedish PIC”).

Similar to UK PICs, for which API and Barclays Capital have also been responsible, Swedish PICs are structured as Eurobonds, issued by Barclays Bank PLC (Standard & Poor’s credit rating AA) and will be listed on the London Stock Exchange.

Swedish PICs will entitle investors to returns based on the Swedish property market. The annual income return (circa 6% gross for 2003) payable quarterly, and the capital return, payable at redemption, will be determined by the performance of the Svenskt Fastighetsindex (“SFI”)/ Investment Property Databank (“IPD”) All Property Annual Total Return Index.

The maturity profile for the Swedish PICs will be from 30 April 2003 to 31 March 2006 and 31 March 2008, respectively.

Barclays Capital, supported by API, will facilitate a secondary market in Swedish PICs by quoting bid/offer prices on the API website and Reuters Information System, on a best endeavours basis. This will enhance liquidity as well as price transparency.

Offer Details
Structure: Eurobond issued by Barclays Bank PLC under its equity linked note programme.
Issuer: Barclays Bank PLC is the issuer. Standard & Poor’s credit rating AA, Moody’s rating Aa1.

Nico Tates, Chief Executive of API Continental Europe: “When compared to direct property investment, Swedish PICs represent a low cost and low risk means of accessing the Swedish property market. For these reasons they will be attractive to strategic as well as tactical investors not only from the Nordic region but also from The Netherlands, Germany and elsewhere.”

Source: Aberdeen Property Investors Continental Europe BV

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