After the first half of 2011 Wihlborgs loan volume was SEK 10,037 million with an average interest rate including margins of 3.68 per cent.
Long-term interest rates in the market have fallen significantly since the end of June. In August Wihlborgs therefore concluded new interest rate swap agreements to a total value of SEK 2,700 million.
- SEK 1,700 million at a fixed rate of 2.70 per cent for ten years
- SEK 1,000 million at a fixed rate of 1.96 per cent in a ten-year closable swap, in which the bank can close the swap only after three years and then quarterly.
Wihlborgs has also extended the existing threshold swap of SEK 1,000 million so that the interest rate is reduced from 3.48 to 3.07 per cent in return for the threshold being extended until 2021. The threshold remains unchanged at 4.75 per cent.
At the upcoming year-end, as of this date Wihlborgs has concluded derivative contracts to a value of SEK 7,700 million. With these new interest rate positions and excluding swaps that expire in October, Wihlborgs’ interest rate maturity structure as of 1 September is as follows:
Due (year) Loan amount (SEK m) Average interest rate (%)
2011 2 947 2.81
2012 1 660 3.02
2013 0 0.00
2014 1 000 3.02
2015 0 0.00
>2015 4 430 4.34
Total 10 037 3.54
“Wihlborgs’ interest rate policy is still that flexible rates are cheapest over time. But with the low levels of long-term interest rates in August, we identified an opportunity to achieve a lower level of risk in the loan portfolio,” comments Anders Jarl, CEO.
Wihlborgs Fastigheter AB (publ)
For further information please contact
Anders Jarl, CEO, +46 (0)40-690 57 10, +46 (0)733-71 17 10
Christer Johansson, CFO, +46 (0)40-690 57 06, (0)733-71 17 06
Wihlborgs Fastigheter AB (publ) is a property company specialising in commercial property in the Öresund region. Its property portfolio is in Malmö, Helsingborg, Lund and Copenhagen. Wihlborgs is the leading property company in Malmö, Helsingborg and Lund. The book value of its properties is SEK 17 billion, with an annual rental value of SEK 1.5 billion. The share is listed on NASDAQ OMX Stockholm, Mid Cap segment.