Lowers the average interest margin and provide conditions for continued growth
KlaraBo has today signed three to five-year refinancing credits totalling just over SEK 1,500 million corresponding to 39 per cent of the total loan volume. In addition, KlaraBo has signed credit agreements, which means that the company can expand its credit space on existing properties of approximately SEK 780 million. Finally, KlaraBo has secured credits equivalent to SEK 800 million that provide the opportunity to access attractive financing at short notice, for example for major acquisitions and investments.
"We currently have a low loan-to-value ratio of about 42 per cent, which is well below the ceiling of 65 per cent according to our financial risk limits. We already have a strong balance sheet, with a large amount in cash since the listing. All in all, this means that we have significant scope for acquisitions and investments. By using the balance sheet fully instead of going to the capital market, we create shareholder value", says Andreas Morfiadakis, CEO of KlaraBo.
The credits consist of three to five-year refinancing of SEK 1,500 million for existing loan agreements; a secured credit facility of approximately SEK 780 million on existing properties that the company can draw on over a three-year period and SEK 800 million, of which SEK 400 million can be used in connection with future acquisitions and SEK 400 million as a revolving credit facility. The annual pledge commission for credits that are not used is significantly lower than KlaraBo's actual loan margin.
The credits are obtained at a fixed interest margin at a lower margin than KlaraBo's current margin, which means that the average interest margin decreases, and the credit lock-in period is extended compared to what has been reported in the year-end report for 2021.
Should the entire credit space on existing properties be used, the loan-to-value ratio will be just over 52.2 per cent.
"Today's credit agreements with three different banks I see as proof of our good banking relationships", says Andreas Morfiadakis.
For more information:
Andreas Morfiadakis, CEO KlaraBo
andreas.morfiadakis@klarabo.se
+46 76 133 16 61
About KlaraBo
KlaraBo is a real estate company that acquires, builds, owns and manages attractive residential properties. The company was founded in 2017 and operates throughout the country. The strategy is to acquire existing residential properties as well as land for new construction in regions with population growth and a strong labour market. Our newly constructed apartments are developed in-house and space efficient, which contribute to reasonable rents. Both apartments and buildings are designed in collaboration with the municipality to fit local needs. With wood as the main building material, the new construction holds a high environmental standard. KlaraBo is a long-term property owner. KlaraBo is listed on Nasdaq Stockholm and is traded under the ticker KLARA B.