Heimstaden AB - comment

No material change in the stand-alone liabilities of Heimstaden AB, with the Company buying back SEK130m of their SEK bonds due in 2025. There remains SEK 1,276m of outstanding bonds due in 2025 plus SEK137m of bank debt, SEK366m in April, and the balance in October.  AB has a cash balance of SEK 911m which is insufficient to meet upcoming maturities.  AB does have Investment Properties of SEK 1,408m (separately from Bostad).  

Heimstaden AB need to either get bondholder approval for amand and extend or partially crystalize their stake in Bostad.  We don’t see any prospect of dividends in the short term, and therefore either AB receives a cash injection or bondholders will be asked for a maturity extension.  This is the age-old problem of asset-rich (in theory) and cash-poor.