Heimstaden Bostad Successfully Prices EUR 800m in Hybrid Capital
Heimstaden Bostad AB yesterday successfully priced an issuance of a EUR 800 million subordinated perpetual hybrid bond with an annual fixed rate coupon of 2.625% and a non-call period of 6.25 years. The issue attracted strong interest. S&P will classify the hybrid as having intermediate equity content and has assigned a ꞌBB+ꞌ rating to the issue. The proceeds will be accounted for as 100% equity by Heimstaden Bostad according to IFRS and will be used for general corporate purposes, including new investments. An application will be made for the bond to be listed on Euronext Dublin. The