Fabege hedges interest in its loan portfolio
On the basis of the current low rates of long-term interest, Fabege has chosen to hedge some of the interest rates of its loan portfolio by entering interest-swap agreements totalling SEK 5 billion. The interest hedging comprises about 30 per cent of the total loan portfolio. The agreements entered have the following terms: · SEK 1.0 billion at three years · SEK 1.5 billion at five years · SEK 1.5 billion at seven years · SEK 1.0 billion at ten years The interest-swap agreements mean that Fabege will pay a fixed annual rate of interest for the terms stated above of between