Samhällsbyggnadsbolaget i Norden AB considers issue of hybrid bonds and S&P confirms equity treatment

Samhällsbyggnadsbolaget i Norden AB (publ) (”SBB” or “the Company”) announced in September 2017 the issuance of hybrid bonds totalling SEK 700 million and a framework amount of up to SEK 1,000 million. On 15 March 2018, Standard & Poor’s confirmed the treatment of the hybrid bonds as 50% equity and 50% debt. In addition, S&P affirmed its 'BB' long-term rating with stable outlook. The equity treatment of the bond is subject to pending amendments to the hybrid bond documentation[1].

The board of directors of SBB has decided that the hybrid capital will constitute a permanent share of the Company’s capital structure, which over time may amount to maximum 15 per cent of the Company’s capitalization[2] according to S&P’s definition.

The hybrid capital further strengthens SBB´s financial position and the Company’s ambition to meet the conditions for an Investment Grade rating by the end of 2018.

Therefore, the company has mandated DNB and Nordea as joint bookrunners to arrange a series of investor meetings. An issuance of hybrid bonds up to SEK 300 million of the remaining amount under the Company’s existing framework is to follow, subject to market conditions.


[1] For further information regarding the pending amendments, see separate press release dated 9 March 2018.

[2] Capitalization means debt, hybrids and book equity, adjusted for goodwill and also making all other standard adjustments by S&P.

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, ilija@sbbnorden.se

This information is information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was originally submitted for publication in Swedish, through the agency of the contact person set out above on March 19, 2018, at 08.00 CET.

About Samhällsbyggnadsbolaget i Norden AB (publ)

The company’s strategy is to own, manage and develop community service properties throughout the Nordic region and rental apartments in growth regions in Sweden. Through the company's commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the company an attractive long-term partner. SBB was named the winner of the 2017 Real Estate Company of the year Award. The company’s series B shares (short name SBB B) and preference shares (SBB PREF) are listed on Nasdaq First North Premier. Certified Adviser is Remium Nordic Holding AB (www.remium.com). More information about the company is available at www.sbbnorden.se.

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