FRANKFURT - Deutsche Bank AG (NYSE:DB), Frankfurt announced today that Heimstaden Bostad AB (publ), a prominent real estate company, has concluded a EUR 500 million bond issue with a five-year maturity without the need for stabilisation activities. The bond, with an ISIN Code of XS2931248848, was issued at a price of 99.240% and features a spread over the benchmark OBL 2.5% 10/29 of 187.8 basis points.
The transaction, initially announced on October 29, 2024, was managed by a syndicate of banks including BNP PARIBAS, Citi, Deutsche Bank (ETR:DBKGn), J.P. Morgan, and Swedbank. Following the completion of the offering, no stabilisation measures were required, indicating stable demand for the securities.
Stabilisation activities are often employed by underwriters to support the market price of a new security after its initial offering. However, the absence of such measures in this case suggests that the market had sufficient appetite for Heimstaden Bostad AB's offering, allowing it to maintain its price without additional intervention.
The successful bond issue is a significant financial event for Heimstaden Bostad AB, yet the announcement also clarifies that the securities have not been and will not be registered under the United States Securities Act of 1933. Therefore, they may not be offered or sold in the United States absent registration or an exemption from registration. Furthermore, the securities will not be subject to a public offer in the United States.
This information is based on a press release statement and is provided for general informational purposes. It does not constitute an offer or invitation to purchase or subscribe for any securities and is not intended for distribution in jurisdictions where such distribution would be unlawful, including the United States.
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