Heimstaden Bostad issues EUR 2.75bn senior unsecured bonds and EUR 600m hybrid bond
Heimstaden Bostad yesterday successfully issued EUR 2.75 billion in fixed rate senior unsecured bonds under its EMTN programme with maturities of 3, 6.5 and 10 years. The bonds carry annual coupons of 0.25%, 1.00% and 1.625%, respectively, and are expected to be rated ‘BBB’ by S&P and Fitch. Heimstaden Bostad also issued a EUR 600 million subordinated perpetual hybrid bond with an annual fixed rate coupon of 3.625% and a next reset period of 5.25 years. The bond will be accounted for as 100% equity by Heimstaden Bostad in accordance with IFRS. S&P and Fitch will classify the bond as