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Wästbygg Gruppen AB (publ) contemplates issuance of new senior secured green bonds and announces a conditional tender offer for its outstanding 2021/2024 unsecured bonds
Wästbygg Gruppen AB (publ) (the “Company” or “Wästbygg Group”) has mandated DNB Markets, a part of DNB Bank ASA, Sweden Branch (“DNB Markets”), and Swedbank AB (publ) (“Swedbank”) as Joint Bookrunners to arrange a series of credit investor meetings to explore the possibility of issuing floating rate senior secured green bonds under a total framework of SEK 1,000,000,000, with an expected tenor of three years and an expected initial amount of up to SEK 500,000,000 (the “New Bonds”). Subject to market conditions, a capital markets transaction may follow. The proceeds from the contemplated issue will be used to finance and refinance assets in accordance with the Company’s updated Green Finance Framework, including refinancing of the outstanding SEK 400,000,000 green bonds issued under the 2021/2024 senior unsecured bond framework due 2024 with ISIN SE0016798227 (the “Existing Bonds”).
The updated Green Finance Framework (the “Framework”) covers investments that will support Wästbygg Group’s ambition to reach net-zero emissions across its value chain by 2045, including investments in green buildings and renewable energy. Please see the Green Financing Framework available on Wästbygg Group’s website for further details, www.wbgr.se.
To confirm the Framework’s alignment with the 2021 version of the ICMA Green Bond Principles and the 2023 version of the LMA Green Loan Principles, Wästbygg Group has obtained a second party opinion from S&P Global Ratings, who have awarded the Framework a light green shading. Under the Framework, Wästbygg Group may, in addition to bonds, also include future bank debt. DNB Markets has acted as sole structuring advisor for the Green Finance Framework.
In conjunction with the potential issue of the New Bonds, Wästbygg Group is offering holders of the Existing Bonds to tender any and all of their Existing Bonds for purchase by Wästbygg Group for cash at a purchase price equal to 100.25 per cent of the nominal amount plus accrued and unpaid interest (the “Tender Offer”). The Existing Bonds will be repurchased subject to the terms and conditions described in the tender information document dated 4 September 2024 (the “Tender Information Document”). The full terms and conditions of the Tender Offer can be found in the Tender Information Document, which is available via the following link.
The Tender Offer expires at 12:00 CEST on 10 September 2024, unless extended, re-opened, withdrawn or terminated at the sole discretion of Wästbygg Group. Settlement of the Tender Offer is expected to occur on or around 17 September 2024. The Tender Offer is in its entirety conditional upon, among other things, a successful issue of the New Bonds.
Wästbygg Group will, in connection with the allocation of the New Bonds, consider, among other factors, whether or not the relevant investor seeking an allocation of the New Bonds has, prior to such allocation, validly tendered Existing Bonds pursuant to the Tender Offer, subject to the terms in the Tender Information Document.
Conditional upon the successful issuance of the New Bonds, Wästbygg Group intends to exercise its right for early redemption of the Existing Bonds not being tendered in the Tender Offer, in accordance with the terms and conditions of the Existing Bonds at the redemption price of 100.25 per cent of the nominal amount together with accrued but unpaid interest up to (and including) the redemption date.
Wästbygg Group has mandated DNB Markets and Swedbank as joint bookrunners for the issuance of the New Bonds, and as dealer managers in connection with the Tender Offer. Gernandt & Danielsson acted as legal advisor to the Company.
Dealer Managers:
DNB Markets: +47 23 26 80 99, bond.syndicate@dnb.no
Swedbank: +46 8 700 90 22, liabilitymanagement@swedbank.se
For further information, please contact:
Jonas Jönehall, CEO
+46 73 920 19 01, Jonas.jonehall@wbgr.se
Robin Sundin, COO
+46 72 529 30 04, robin.sundin@wbgr.se
About Wästbygg Group:
The Wästbygg Group is a listed construction and project development company that builds and develops residential, commercial buildings and community service properties, as well as logistics and industrial. The group comprises Wästbygg AB, Rekab Entreprenad AB and Logistic Contractor AB.
The group operates in the most expanding markets in Sweden and within Logistic Contractor also in the neighboring Nordic countries. In 2023, the group had sales of SEK 4.8 billion and 550 employees.
