Kungsleden has extended a credit commitment at a lower commitment fee
Kungsleden AB (publ) through wholly owned subsidiaries have entered into an agreement on a credit commitment with a duration of 3 years from Svenska Handelsbanken (publ). The credit commitment will replace the previously concluded commitment which will expire during mid June 2017.
The purpose of the credit commitment is to provide backup-facility for the issuing of commercial papers and the loans under the facility will be fully secured with mortgage deed in real property. In total Kungsleden has unutilised credits amounting to SEK 1,854 million of which SEK 780 million is dedicated backup for current issued amount of commercial papers. Average capital term, included unutilised credits, will increase from 3.8 years at 31 March 2017 to 4.2 years with the new agreement in place.
"With the new credit commitment we achieve conditions to continue to benefit from the significant interest to invest in short term corporate loans in today's low interest-rate environment. At the same time we maintain the security in liquidity supply since the commercial papers are fully backed by this new and extended credit commitment which will also reduce ongoing commitment fee on unutilised credits", says Anders Kvist, Deputy CEO and CFO at Kungsleden.
Detta pressmeddelande finns tillgängligt på svenska på www.kungsleden.se/pressmeddelanden
The information was provided for public release on 5/5 2017 07:00 a.m.
Kungsleden is a long term property-owner that provides attractive, functional premises that enrich people’s working days. We create value by owning, managing and developing offices and other commercial properties in Stockholm and Sweden’s other growth regions. A large portion of our properties belong to attractively located clusters where we also engage in the development of the whole area. Kungsleden’s goal is to deliver an attractive total return on our properties and for our shareholders. Kungsleden is listed on NASDAQ Nordic Large Cap.