Bulletin: Property Company Akelius To Raise Equity Ahead Of First Call On Hybrid Bond

This report does not constitute a rating action. PARIS (S&P Global Ratings) May 11, 2023--S&P Global Ratings said today that Sweden-based property company Akelius Residential Property AB is expected to remain committed to retaining hybrid capital as part of its capital structure, allowing it to absorb losses or conserve cash when needed. It has, however, announced a planned equity issuance of €168 million to replace an outstanding €315 million hybrid bond that will reach its first call date in October 2023. As a result, we reassessed our view of the instrument's equity content to zero (no equity content) from 50% (intermediate equity content). The common equity issuance will represent at least 50% equity component of the €315 million hybrid bond,

...May 11, 2023 This report does not constitute a rating action. PARIS (S&P Global Ratings) May 11, 2023--S&P Global Ratings said today that Sweden-based property company Akelius Residential Property AB is expected to remain committed to retaining hybrid capital as part of its capital structure, allowing it to absorb losses or conserve cash when needed. It has, however, announced a planned equity issuance of 168 million to replace an outstanding 315 million hybrid bond that will reach its first call date in October 2023. As a result, we reassessed our view of the instrument's equity content to zero (no equity content) from 50% (intermediate equity content). The common equity issuance will represent at least 50% equity component of the 315 million hybrid bond, and we understand that the remainder will be repaid with cash on balance sheet. Given that we understand Akelius remains committed to retaining hybrid capital as part of its capital structure, we view the planned transaction as being...

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