Magnolia Bostad issues new senior unsecured green bonds of SEK 500 million

Magnolia Bostad AB (publ) ("Magnolia Bostad") has successfully issued four year senior unsecured floating rate green bonds in an amount of SEK 500 million under a framework of up to SEK 1,000 million.

The new bonds are due in March 2025 and carries a floating interest rate of STIBOR 3m plus 6.90 per cent and the transaction was heavily oversubscribed. Magnolia Bostad intends to list the new bonds on the sustainable bond list of Nasdaq Stockholm. An amount equivalent to the net proceeds from the bond issue will be applied in accordance with the principles set out in Magnolia Bostad’s Green Bond Framework, including the repurchase and redemption of Magnolia Bostad's outstanding SEK 600[1] million senior unsecured bonds 2016/2021 (the "Existing Bonds").

“This is our second green bond issue and it is with great delight we note the continued great support from existing investors as well as new investors. A strong factor to the great interest is Magnolia Bostad’s green profile and reaffirms that our sustainability work is value-creating. The proceeds will be applied towards the financing of planned housing projects that are developed according to our life cycle perspective and re-financing of environmentally sustainable buildings.” comments Fredrik Westin, CFO.

As previously announced in a press release dated 10 March 2021, in accordance with its rights set out in the terms of the tender documentation, Magnolia Bostad rescheduled the expiry for priority allocation of new bonds in connection with the tender offer (the "Tender Offer") in respect of the Existing Bonds from 12.00 CET on 11 March 2021 to 16.00 CET on 10 March 2021. At the expiration of the priority allocation in the new bonds for holders of Existing Bonds in the Tender Offer on 16.00 CET 10 March 2021, valid tender instructions in respect of the Existing Bonds in an aggregate nominal amount of SEK 114 million were received pursuant to the Tender Offer. The final tender results of the Tender Offer for the Existing Bonds will be published following the expiration of the Tender Offer on 11 March 2021.

Nordea Bank Abp and Swedbank AB (publ) has acted as joint arrangers and bookrunners in respect of the issuance of the new bonds and acting as dealer managers and tender agents for the Tender Offer. Gernandt & Danielsson acted as legal advisor to Magnolia Bostad in respect of the issuance of the new bonds and for the Tender Offer.

Dealer Managers and Tender Agents:
Nordea Bank Abp: +45 6161 2996, NordeaLiabilityManagement@nordea.com
Swedbank AB (publ): +46 (0)8 700 90 22, Syndicate@swedbank.se

For further information, please contact Magnolia Bostad at:
Fredrik Westin, CFO,
+46 72 720 00 06, fredrik.westin@magnoliabostad.se

This information is information that Magnolia Bostad is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 19.45 CET on 10 March 2021.

[1] As announced on 24 September 2020, Magnolia has previously repurchased SEK 347,000,000

Magnolia Bostad AB, CIN 556797–7078, is a leading urban developer that develops new residential properties primarily rental apartments but also tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. Housing is being developed both for sale and for self-management. Our work is based on a holistic approach where the operations are conducted in a way that promotes long-term, sustainable urban development. Magnolia Bostad's shares (MAG) are listed on Nasdaq Stockholm. More information is available at www.magnoliabostad.com/en