Kungsleden refinances loans and extends the average maturity on borrowings with a lower funding cost
Kungsleden AB (publ) has refinanced bank loans of SEK 1,340 m by borrowing from Realkredit Danmark, which is a fully owned subsidiary to Danske Bank. Realkredit Danmark issues mortgage- backed bonds with an AAA rating received by Standard & poor's.Kungsleden receives a credit commitment with a duration of 20 years that is financed by Realkredit Danmark issuing covered bonds. The measure will extend the average maturity on borrowings from 2.9 years to 4 years while reducing the cost of borrowing. The cost of borrowing consist of Realkredit Danmark's own funding cost for issuing the bond