Kungsleden issues bond loans of SEK 1 350 million

Kungsleden AB (publ.)(”Kungsleden”) has issued four- years senior unsecured bond loans under the recently established MTN program. The loans amounts in total to SEK 1 350 million and has a final maturity date in October 2021.

The first loan of SEK 1 000 million has a floating rate coupon of STIBOR 3M plus 1.8 per cent which corresponds to an initial coupon of about 1.32 per cent. The second loan with a loan amount of SEK 350 million has a fixed coupon rate equivalent to 4 year mid swap rate plus 1.8 per cent, which corresponds to a fixed coupon of 2.06 per cent.

“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 per cent 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 advokatfirman Törngren Magnell has been legal advisor to Kungsleden.

Kungsleden intends to list the bond loan on the corporate bond list of NASDAQ Stockholm.

For more information, please contact:

Biljana Pehrsson, Chief Executive of Kungsleden | 46 (0)8 503 052 04 | biljana.pehrsson@kungsleden.se
Anders Kvist, Deputy CEO and CFO of Kungsleden | 46 (0)8 503 052 11 | anders.kvist@kungsleden.se

www.kungsleden.se

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

The information was provided for public release on 5 October, 2017 at 07:00.

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.

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Quotes

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
Biljana Pehrsson, CEO Kungsleden