Heimstaden Issues EUR 300m Hybrid Bond
Heimstaden AB today successfully issued EUR 300 million in its inaugural euro-denominated subordinated perpetual hybrid bond with an initial reset of 5.25 years. The bond carries an annual fixed rate coupon of 6.750% and a yield of 6.875%. The bond will be accounted for as 100% equity by Heimstaden in accordance with IFRS. Fitch is expected to classify the bond as having 50% equity content and to assign a ‘BB-’ rating to the issue. The proceeds will be used for general corporate purposes and to reduce the commitments under Heimstaden’s bridge financing facility. The offering