(Bloomberg) -- Embattled landlord SBB could issue up to 4.8 million new class B shares in 2027 after top management rolled out a new incentive program using stock options.

Executives at Samhallsbyggnadsbolaget i Norden AB — as the company is formally known — last week bought about 4.8 million warrants in SBB, a single one of which gives the holder the right to subscribe to one new Class B share in the Swedish real estate group, according to a regulatory filing with Sweden’s financial watchdog. 

SBB’s incentive program was approved at an extraordinary general meeting in March. The rationale for the plan was to let employees “become long-term owners and participate in and work for a positive growth of value of the company’s share,” according to a statement. It also said the plan would help them recruit and retain motivated staff.

The incentive program comes at an acute time for the Stockholm-based landlord, which last month struck a second financing deal with Castlelake LP to boost its strained balance sheet. The arrangement with the US firm followed similar transactions with Morgan Stanley and Canada’s Brookfield Asset Management Ltd. The real estate group is also planning an initial public offering of its entire residential portfolio as it seeks to find ways to refinance a 59.2 billion Swedish kronor ($5.6 billion) debt pile.

SBB Chief Executive Officer Leiv Synnes bought 2.2 million warrants for 1.3 Swedish kronor apiece, the filing showed. Other SBB executives comprising Annika Ekstrom, Helena Lindahl, Krister Karlsson and Carl-Lundh Mortimer bought the remaining 2.6 million warrants at the same price.

The warrants may be exercised for new shares during the month of April in 2027, the company said in March. 

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