Hemsö’s shareholders have decided to make an additional equity injection of SEK 1.0 billion to increase the investment capacity whilst keeping a stable capital structure. The capital will be injected in 2020.
Hemös continues to grow and has an ambition to serve as a long-term and stable property partner to the public sector. The demand for new schools and nursing homes is large and growing, which means large investments for the municipalities. Hemsö has increased the Subcription agreement from the Third Swedish National Pension Fund from SEK 4.0 billion to SEK 5.0 billion in order to further strengthen Hemsö’s position in the financial markets and increase the readiness in case of more challenging credit markets. Hemsö has also updated its Financial Policy with regards to its liquidity position. The company’s Debt Cover Ratio, i.e. Available liquidity in relation to short-term borrowings, shall be a minimum of 125% (previously 110%).
– Hemsö has identified several new investment opportunities. In order to secure a stable financial position and strong access to liquidity, new equity and capital commitments will be provided to the company. Through increasing available liquidity, we become less dependent on financing sources in the credit markets. As the increased capital commitment is provided by our majority owner, the Third Swedish National Pension Fund, we become less dependent on the commercial banks whom currently provides the majority of our credit commitments. We are ensuring that Hemsö will continue to be a stable long-term property partner to the public sector regardless of market conditions, says Rutger Källén, Deputy CEO and CFO.
– Hemsö is a long-term investment for the Third Swedish National Pension Fund as it diversifies our investment portfolio in a valuable manner. Hence, we are positive to support Hemsö in its growth, especially when the demand for municipal social infrastructure is increasing considerably, says Kerstin Hessius, CEO the Third Swedish National Pension Fund.