In January, Fabege together with Wihlborgs, Platzer, Diös and Catena launched a joint MTN programme totalling SEK 8,000m through the newly established finance company Nya Svensk Fastighetsfinansiering AB (Nya SFF).
For Fabege, the Nya SFF is an efficient way to reach the capital market via hedged MTN and a way of broadening the base of the company’s borrowing structure.
In February, Nya SFF issued bonds totalling SEK 2,025m with a duration of between two and five years, at both fixed and variable interest rates.
Now, an additional issue offering of SEK 297m has been subscribed under the MTN programme, of which Fabege borrowed SEK 185m for two years at a fixed yearly interest rate of 0.545 per cent.
Following this recent issue, Nya SFF’s total outstanding volume is SEK 2,322m with a duration of between two and five years, at both fixed and variable interest rates. Following the new issue, Fabege borrowed a total of SEK 867m through the programme.
“It is gratifying to see the keen interest from the equity market and that Nya SFF’s second issue is also being offered at competitive terms. Nya SFF is offering a source of financing with competitive prices as a supplement to today’s borrowing structure,” comments Åsa Bergström, Deputy CEO and CFO of Fabege.
Fabege AB (publ)