Kungsleden has issued four-years senior unsecured bond loans under the recently established MTN program. The loans amount in total to €141.5m (SEK 1350m) and have a final maturity date in October 2021.
The first loan of €104.8 (SEK 1000m) has a floating rate coupon of STIBOR 3M plus 1.8% which corresponds to an initial coupon of about 1.32%. The second loan with a loan amount of €36.7m (SEK 350m) has a fixed coupon rate equivalent to 4-year mid-swap rate plus 1.8 %, which corresponds to a fixed coupon of 2.06%.
“We are glad that the interest from investors was high in this first issue after achieving a public credit rating from Moody's of Ba1 with Positive Outlook. Kungsleden aims to increase its market borrowing in order to further diversify its funding mix, increase the proportion of unsecured borrowing and extend the average capital term", says Biljana Pehrsson, CEO Kungsleden.
Proceeds from the bond issue will be used to repay part of a short-term bank loan secured with mortgage deed in real property, thus helping to increase the proportion of unsecured borrowing which after the transaction corresponds to about 13% of the total borrowings. The average capital term will also be extended and will after the repayment amount to about 4,2 years.
Handelsbanken Capital Markets and Nordea have been arranger and dealer and Torngren Magnell has been a legal advisor to Kungsleden.
Kungsleden intends to list the bond loan on the corporate bond list of NASDAQ Stockholm.
