On 16 November 2023 Samhällsbyggnadsbolaget i Norden AB (SBB) announced a voluntary tender offer for all its outstanding euro-denominated senior unsecured and hybrid debt instruments up to a maximum purchase amount of EUR 600m, which will be concluded on the 22 November 2023 at 4 p.m. GMT. The tender offer is run as an unmodified Dutch auction with a minimum purchase price set by SBB for each debt instrument, and any acceptance of tendered instruments and the total amount used is at the sole and absolute discretion of SBB. In addition, the tender offer is subject to receiving the transaction proceeds of SEK 8bn from the EduCo transaction with Brookfield before the tender runs out.

Scope is of the understanding that SBB is following through on its completion of the strategic review and the company’s guidance to proactively address liquidity concerns and short-term debt maturities with any proceeds generated from recent asset sales and the EduCo transaction. As such, Scope expects SBB to repurchase the upcoming short-term debt maturities in the tender offer. These short-term debt maturities include the 2024 (XS2438632874) and 2025 bonds (XS1993969515; XS2597112155). Scope expects purchases under the tender offer to be done without curtailing liquidity needed to address other upcoming maturities in a timely manner.

Scope will closely monitor the result of the tender offer and assess its impact on the credit quality of the company.

Scope maintains the current ratings of Samhällsbyggnadsbolaget i Norden AB under review for a developing outcome (issuer rating: CCC under review for a developing outcome; senior unsecured debt rating: B- under review for a developing outcome; subordinated (hybrid) debt rating: CC under review for a developing outcome and; the short-term debt rating: S-4 under review for a developing outcome).

This monitoring note does not constitute a credit rating action, nor does it indicate the likelihood that Scope will conduct a credit rating action in the short term. Information about the latest credit rating action connected with this monitoring note along with the associated rating history can be found on www.scoperatings.com.

The methodologies applicable for the reviewed ratings and/or rating Outlook (General Corporate Rating Methodology, 16 October 2023; European Real Estate Rating Methodology, 25 January 2023), are available on https://scoperatings.com/governance-and-policies/rating-governance/methodologies.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0. 
Lead analyst Thomas Faeh, Executive Director

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