Castellum issues inaugural €500m EMTN bond

Castellum, one of the largest listed real estate companies in Sweden, has issued its first bond under its newly established Euro Medium Term Note (EMTN) programme.

The bond has a notional value of €500 mln and a maturity of five years. Most of the bond proceeds have been swapped into Swedish Kroner (SEK).

Castellum also announced that it has continued to renegotiate and extend its existing bank credit facilities, while restructuring part of its interest rate swap portfolio with a discount amount equivalent of SEK 500 mln.

Castellum said the financial programme was executed 'in order to enhance the prerequisites for a stable financial net going forward'.

It said that by the end of November, it expected this strategy to have extended the average maturity of Castellum's debt portfolio to approximately 3.5 years from a previous figure of 2.7, with an average interest rate duration of approximately 2.9 years (formerly 2.3) and a yield of approximately 2.0% (2.1), compared with the end of Q3 2018.


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