Sweden's SBB creditors swap $158 mn debt for residential bonds

01 Jul 2024 CW Team

Creditors of Swedish real estate firm SBB have agreed to swap a portion of its debt for bonds in a residential property unit as part of the group's on-going restructuring efforts. This move follows the election of a new board chair.

SBB has been at the centre of a Swedish property market bubble that started to burst in 2022 due to soaring inflation and interest rates, leading to significant cuts in its credit ratings and a sharp decline in its share price. The debt swap was executed at a substantial discount, allowing the group to record a gain in equity of 1.8 billion Swedish crowns, according to CEO Leiv Synnes.

The debt, which creditors agreed to exchange for new bonds in the residential unit and some cash, was originally valued at 3.9 billion Swedish crowns. At the end of March, the loss-making SBB had net debts totaling approximately 56 billion crowns. Creditors exchanged $157.5 million worth of debt for bonds in SBB's residential unit Sveafastigheter, preparing the subsidiary for an initial public offering or stake sale. "This is the last major step to get Sveafastigheter ready for capital raising," Synnes said.

On the same day, shareholders elected Lennart Sten as SBB's new board chair, despite proxy advisers' recommendations to reject his candidacy. Sten, who was a senior adviser to the SBB board, replaces Lennart Schuss, who had been chair since 2017. Proxy advisers Institutional Shareholder Services and Glass Lewis had advised shareholders to vote against Sten's appointment, citing concerns that he might hold too many board positions.

Sten assured the annual general meeting that he has sufficient time to fulfil his role as board chair. Sweden's Aktiespararna shareholders association voted in favour of the new board after raising questions to the outgoing board during the meeting. (Source: ET & Reuters)

Infrastructure Transport

15 Oct 2025

BMC Gets CRZ Nod For Rs 40 Million Gorai Bridge Rebuild

The Brihanmumbai Municipal Corporation (BMC) has secured Coastal Regulation Zone (CRZ) clearance for the reconstruction of the Poisar River bridge in Gorai, located in Mumbai’s western suburbs. However, the proposed demolition of the existing 100-metre bridge has sparked opposition from local residents, who claim it serves as the only direct access route between the Lower and Upper Koliwada areas. The three-decade-old bridge, situated within the CRZ buffer zone, was recently declared structurally unsafe following a civic audit. The BMC has sanctioned its reconstruction at an estimated cost ..

NHAI Completes Rs 15.9 Billion Four-Lane Stretch On ECR

The National Highways Authority of India (NHAI) has completed the four-laning of the 38 km Puducherry–Poondiyankuppam stretch, ending near Cuddalore, in a development that will cut travel time by up to two hours, according to a report by The New Indian Express. The upgraded section, built at a cost of Rs 15.9 billion under the Bharatmala Pariyojana Phase I, marks a major milestone in the ongoing East Coast Road (ECR) widening programme. The project promises a smoother, faster drive for motorists travelling towards Cuddalore, Chidambaram, Sirkazhi, and Nagapattinam. With this completion, 22..

Encroachments Delay Rs 1 Billion Ghatkopar Bridge Project

The construction of a new cable-stayed rail overbridge at Ghatkopar and the widening of the Andheri–Ghatkopar Link Road (AGLR) have been delayed due to the presence of nearly 250 encroached structures on both sides of the road. In response, Municipal Commissioner Bhushan Gagrani has directed officials to carry out a structural audit of the existing bridge over the railway line and enforce temporary restrictions on heavy vehicles to ensure public safety. The bridge, which starts at the Golibar Road junction near LBS Marg and extends up to the Eastern Express Highway (EEH), serves as a critic..