Attractive risk/reward in Heimstaden AB hybrids-07/01/2026

研报英文原文证据摘录

Attractive risk/reward in Heimstaden AB hybrids-07/01/2026

Heimstaden AB

CREDIT UPDATE | 1 JUL 2026

Attractive risk/reward in Heimstaden AB hybrids

Credit metrics in Bostad are improving quarter by quarter, with ICR (S&P method) now at 1.7x. There is a liquidity runway

in Heimstaden AB to Q1 2028, and we are con.dent that dividends from Bostad to AB will be reinstated ahead of that. The

key trigger for reinstating dividends is a clear path to a BBB flat rating in Heimstaden Bostad. Capital markets pricing across

the rest of the Heimstaden structure has normalised toward pre-COVID levels, with senior unsecured bonds in Heimstaden

AB trading at ~400 bps. The hybrids in Heimstaden AB are also trading above par, but there is accrued interest of 24%/18%

on the SEK/EUR hybrids after ~2.5 years of no cash coupons. Hybrid holders have solid value backing with an LTV of 36.5%

(incl. accrued interest). At prices of 107%/106% on the SEK/EUR hybrids, the yield to re.nancing in Q1’28 is 19%/16%. An

upside scenario is a re.nancing at the EUR hybrid step-up date in Q1’27, providing annualised IRR of 43%/30% (~21%/15%

over the 6-month holding period). In sum, we see highly attractive risk-reward in the hybrids in Heimstaden AB.

Link to supporting slides.

Peder Loholt Kristiansen

+47 24 13 21 08, peder.loholt.kristiansen@paretosec.com

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