Kungsleden has successfully issued its first green bond

Kungsleden AB (publ.) (“Kungsleden”) has successfully issued its first green bond of SEK 2,000 million with a tenor of four years under its MTN program.

The bond consists of two tranches: one with a floating rate and one with a fixed rate. The tenor of both tranches is four years. The floating rate tranche amounts to SEK 1,250 million and has a floating rate coupon of STIBOR 3 months plus 205 bps, which corresponds to an initial coupon of circa 1.61 percent. The fixed rate tranche amounts to SEK 750 million and has a fixed rate equivalent to four year mid swap rate plus 205 bps, which indicates a fixed coupon of 2.38 percent.

Kungsleden has a clear sustainability profile and sustainability is a clear and integrated part of the company’s business. Kungsleden’s ambition is to certify all properties by year 2025 and will strive to finance all green assets with green financing.

“We are very happy with the high interest we have received from investors regarding our first green bond. The strong demand did not only enable a large issue volume but also broadens our credit investor base. In total approximately 50 investors participated, which of around ten were completely new investors in Kungsleden and chose to participate due to that the issue was green. With this transaction we take a further large step towards fulfilling the prerequisites needed for our credit rating by Moody’s to be improved to Investment Grade.” says Kungsleden’s CEO Biljana Pehrsson.

SEB and Swedbank has acted as Joint Bookrunners for the transaction and SEB has acted as advisor regarding the establishment of the framework for green bonds and Second Opinion. The company intends to list the bond loans on Nasdaq Stockholm Sustainable Bonds List.

For more information, please contact:

  

Biljana Pehrsson, CEO of Kungsleden | 46 (0) 503 052 04 |

biljana.pehrsson@kungsleden.se

Anders Kvist, Deputy CEO and CFO of Kungsleden | 46 (0) 503 052 11 |

anders.kvist@kungsleden.se

 

Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden

The information was provided for public release on March 15, 2018 at 8:00 a.m.

Kungsleden is a long term property-owner that provides attractive, functional premises that enrich people’s working days. We create value by owning, managing and developing offices and other commercial properties in Stockholm and Sweden’s other growth regions. A large portion of our properties belong to attractively located clusters where we also engage in the development of the whole area. Kungsleden’s goal is to deliver an attractive total return on our properties and for our shareholders. Kungsleden is listed on NASDAQ Nordic Large Cap.

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About Us

Kungsleden is a property company operating in Sweden and listed on Nasdaq Stockholm. We focus on owning, actively managing, improving and developing commercial properties long-term in the office, industry/warehouse and retail segments, in chosen growth regions such as Greater Stockholm, Greater Gothenburg, the Mälar Valley and southwestern Sweden. We offer appealing and functional premises in the right locations at the right price. Clustering our properties, ensuring a good local knowledge and being close to our customers allows us to quickly offer new solutions when our customers’ needs change.