Peab has refinanced a credit facility of SEK 5.0 billion maturing in September 2016, a new credit facility of SEK 4.0 billion. The new agreement expires on September 30, 2018 with an option to extend the maturity by one plus one year.
The transaction involved five banks, and all five of them were lenders in the facility that has refinanced. The five lenders in the banking group are Nordea, Swedbank, Danske Bank, Handelsbanken and DNB. The transaction is coordinated by Nordea.
The loan agreement constitutes Peab’s long-term core funding, to be supplemented by capital market financing, other types of short-term operating financing and project related loans.
Peab’s CEO Jesper Göransson said:
“We are pleased that we in good time have agreed on a new bank financing. With reduced debt, we have chosen to reduce the volume of credit, and thus the cost of credit. The credit agreement provides us with a stable financial platform for the next few years. Long-term banking relationships have always been an important part of Peab’s development.”