Heimstaden Bostad receives preliminary ‘BBB-’ rating from S&P and intends to investigate the possibilities to carry out its first issue in the bond market
Heimstaden Bostad has received a preliminary Investment Grade rating from S&P of ‘BBB-’ with a stable outlook. The Company has further mandated Danske Bank, DNB, J.P. Morgan and Nordea to investigate the conditions for a first time multi tranche bond issue. The reasons for why Heimstaden Bostad wants to investigate the possibility of a bond issue are inter alia:- To extend the average tenor of the debt portfolio by issuing bonds with longer maturities than the debt that will be repaid.- In accordance to the S&P rating criteria reduce the amount of secured debt by issuing unsecured bonds