Sweden's SBB Swaps $2.9 Bn Debt to Target Lower Leverage Ahead
Real Estate

Sweden's SBB Swaps $2.9 Bn Debt to Target Lower Leverage Ahead

Swedish real estate group SBB will gain increased flexibility in divesting property and reducing its overall debt after completing a bond exchange offer, according to the company's CEO in an interview with Reuters.

The company announced that bondholders had agreed to exchange debt worth 2.78 billion euros for new securities, which is part of an effort to resolve objections from some creditors regarding its restructuring.

SBB, which expanded through a public property buying spree that included social housing, government offices, schools, and hospitals, found itself at the centre of a Swedish property market bubble that began to collapse from 2022 to 2023 as inflation and interest rates surged.

The company had set a minimum requirement of 1.7 billion euros to proceed with the debt exchange, which it stated clarified bond clauses, or covenants, helping to facilitate its restructuring process.

The CEO, Leiv Synnes, mentioned that most bondholders had been cooperative and worked with the company. He added that 95 per cent of the relevant creditors had accepted the exchange offer.

This year, SBB has spun off several property units as independent companies and plans further restructuring. Synnes remarked that the company had demonstrated its ability to handle property transactions effectively and engage in productive dialogue with creditors. He also acknowledged the need to lower leverage and assured that steps would be taken to achieve that.

SBB's share price had risen by 18 per cent to 4.15 Swedish crowns by 0920 GMT on the Stockholm bourse, although it remains down more than 90 per cent from its 2022 peak.

Swedish real estate group SBB will gain increased flexibility in divesting property and reducing its overall debt after completing a bond exchange offer, according to the company's CEO in an interview with Reuters. The company announced that bondholders had agreed to exchange debt worth 2.78 billion euros for new securities, which is part of an effort to resolve objections from some creditors regarding its restructuring. SBB, which expanded through a public property buying spree that included social housing, government offices, schools, and hospitals, found itself at the centre of a Swedish property market bubble that began to collapse from 2022 to 2023 as inflation and interest rates surged. The company had set a minimum requirement of 1.7 billion euros to proceed with the debt exchange, which it stated clarified bond clauses, or covenants, helping to facilitate its restructuring process. The CEO, Leiv Synnes, mentioned that most bondholders had been cooperative and worked with the company. He added that 95 per cent of the relevant creditors had accepted the exchange offer. This year, SBB has spun off several property units as independent companies and plans further restructuring. Synnes remarked that the company had demonstrated its ability to handle property transactions effectively and engage in productive dialogue with creditors. He also acknowledged the need to lower leverage and assured that steps would be taken to achieve that. SBB's share price had risen by 18 per cent to 4.15 Swedish crowns by 0920 GMT on the Stockholm bourse, although it remains down more than 90 per cent from its 2022 peak.

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?