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Hemsö issues first bond in Europe

- Regulatory information

Hemsö has issued a ten-year bond of EUR 500 million in the European bond market.

During August, Hemsö established an EMTN programme with limit of EUR 3 billion. On Monday, the company issued its first bond of EUR 500 million and the order book amounted to approximately EUR 3.5 billion. The loan has a term of ten years with a coupon rate of 1 per cent.

“With the EMTN programme in place, Hemsö now has good access to European capital, which yesterday’s transaction has demonstrated. This will enable us to finance foreign transactions without any exposure to currency risk. The European market also offers longer loan terms, which means that we can extend the loan maturity,” says Hemsö’s CFO Rutger Källén.

The proceeds will be used to refinance existing debts and finance future acquisitions and investments. Hemsö already has a Swedish borrowing programme and is now expanding its sources of funding to the EUR market.

The arranger of the programme is Citibank and the bonds in the programme will be listed on the Irish Stock Exchange. Citibank, Deutsche Bank, BNP Paribas and Nordea served as advisors during the transaction.