FRANKFURT - Heimstaden Bostad AB has successfully issued EUR 500 million in hybrid bonds with a fixed to reset rate, according to a post-stabilization notice distributed by Deutsche Bank AG (NYSE:DB). The securities, described as Heimstaden Bostad AB EUR 500m Fixed to Reset Rate PNC5.25 Hybrid, were priced at 99.492% with a spread over the benchmark German government bond of 439.7 basis points.
The ISIN Code for these securities is XS2930588657. Notably, no stabilization actions were undertaken by the stabilizing managers BNP PARIBAS, Citi, Deutsche Bank (ETR:DBKGn), J.P. Morgan, and Nordea, as per the Market Abuse Regulation (EU/596/2014) and the European Union (Withdrawal) Act 2018.
The announcement made clear that the securities have not been registered under the United States Securities Act of 1933 and, therefore, may not be offered or sold in the United States absent registration or an exemption from registration. There will not be a public offer of the securities in the United States.
This financial move by Heimstaden Bostad AB reflects the company's efforts to secure additional capital through the debt market. The issuance of hybrid bonds, which combine features of both debt and equity, is an increasingly common strategy for companies looking to optimize their capital structure and manage their financial leverage.
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