Magnolia Bostad issues new senior unsecured green bonds of SEK 550 million

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Magnolia Bostad AB (publ) ("Magnolia Bostad" or the "Company") has successfully issued three and a half year senior unsecured floating rate green bonds in an amount of SEK 550 million under a framework of up to SEK 700 million.

The new bonds are due in April 2024 and carries a floating interest rate of STIBOR 3m + 7.50 per cent and the transaction was heavily oversubscribed. Magnolia Bostad intends to list the new bonds on the sustainable bond list of Nasdaq Stockholm. The proceeds from the bond issue will be used in accordance with the principles set out in the Green Bond Framework.

“We are very pleased with the continued great support from both existing and new investors in our first ever green bond issue. A strong contributing factor to the great interest is the Company’s solid sustainability work, which clearly creates value. The new green bonds are an important building block into the continued development of Magnolia Bostad”, comments Fredrik Westin, CFO.

As previously announced in a press release dated 23 September 2020, 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 Company's outstanding SEK 600 million senior unsecured bonds 2016/2021 (the "Existing Bonds") from 12.00 CEST on 24 September 2020 to 16.00 CEST on 23 September 2020. At the expiration of the priority allocation in the new bonds for holders of Existing Bonds in the Tender Offer on 16.00 CEST 23 September 2020, valid tender instructions in respect of the Existing Bonds in an aggregate nominal amount of SEK 316 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 24 September 2020.

Nordea Bank Abp and Pareto Securities AB 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. Nordea Bank Abp has acted sole structuring advisor to Magnolia Bostad in relation to the establishment of the Green Bond Framework. Gernandt & Danielsson acted as legal advisor to the Company 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
Pareto Securities AB: PSBondIssue.se@paretosec.com

For further information, please contact the Issuer at:
Fredrik Westin, CFO,

+46 72 720 00 06, fredrik.westin@magnoliabostad.se

Magnolia Bostad AB, CIN 556797-7078, is a leading urban developer that develops new residential properties, including rental apartments and tenant-owned apartments, community service properties and hotels, in attractive locations in Sweden's growth areas and major cities. 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.se

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