(Bloomberg) -- Christian Fladeland, the co-chief executive of Swedish landlord Heimstaden Bostad AB, says he was “positively surprised with the appetite” among investors for the company’s first bond sale since February 2022.
Speaking in an interview, Fladeland said the capital markets transaction “came a bit out of the blue” after the property firm got inquiries for a kronor bond issuance with “price points materially compressed to what we were seeing on screens.”
On Wednesday, the pan-European residential landlord said it had sold 1.1 billion Swedish kronor ($108 million) of floating-rate notes at a price of 240 basis points over Stibor, confirming an earlier report by Bloomberg News. The deal was upsized from an initial 500 million kronor, suggesting strong levels of demand.
Fladeland however cautioned that “bond pricing is still wider than we deserve as a company so we won’t be doing issuance at large scale at this level.” He added there are no plans to issue notes in euros “but markets can change quickly.”
Heimstaden Bostad is in the midst of an asset disposal program worth 20 billion kronor as it seeks to shore up its finances and avert a costly downgrade of its credit ratings to high yield. Both Fitch Ratings and Standard & Poor’s rate the company one step above junk, at BBB-, with a negative outlook.
©2024 Bloomberg L.P.
