Heimstaden Bostad - comment

Heimstaden Bostad, through its Czech subsidiaries, has obtained €700m sustainability-lined bank financing. Unfortunately, no tenure or rates have been released with the statement. This facility, we suspect secured lending, is not a surprise as the Company has already indicated their ability to obtain secured lending even in the current environment and new bank debt is in most analysts' models. 

Separately, Alecta's CEO has commented on the Heimstaden Bostad situation in an interview with the Swedish press. He reiterates that the shareholder agreement requires amendment before any new capital is raised. This is consistent with other comments from Alecta and is on the back of both internal and external investigations into Alecta’s prior investments in Heimstaden Bostad. This is posturing and we expect that new money will be injected into Heimstaden Bostad which will dilute Heimstaden AB’s stake.