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The largest non-listed real estate bond to date in the Swedish market

Moderator

 

 

abinv_ny_110118.jpgNorra Banhotellet Invest AB, wholly owned by AB Invest AS, has issued a 3 year SEK 1,400m Senior Secured Bond at 3m Stibor+110bps on December 20, 2017. 

Norra Banhotellet Invest AB, wholly owned by AB Invest AS, has issued a 3 year SEK 1,400m Senior Secured Bond at 3m Stibor+110bps on December 20, 2017. This is AB Invest AS’ inaugural bond issue, and the bond proceeds will refinance the Swedish hotel assets commonly known as the Clarion Sign Hotel in Stockholm and the Scandic Victoria Tower Hotel in Kista. In addition, a part of the bond proceeds will be used to further develop the group’s portfolio of prime hotel assets in Scandinavia. The AB Invest AS group has a number of new projects in various development stages going forward.

 

The Nordic investor universe showed strong interest in the bond issue, with several parties keen to participate at very competitive terms. As the company favoured a low funding cost over longer term financing the 3 year maturity point was chosen.

 

This is the largest non-listed real estate bond to date in the Swedish market, and one of the largest in the Nordics. The transaction highlights that there is still a lot of capital in the bond markets to be allocated to strong real estate companies. Strong bond market candidates can achieve attractive financing terms at the moment, particularly when taking the negative Stibor rates into consideration.

 

DNB Markets acted as Sole Bookrunner in the transaction.

 

We thank AB Invest AS for putting its trust in DNB Markets, and wish the company the best of luck for the future.