Defence and security company Saab has established a Medium Term Note programme (MTN) of SEK 3 billion in order to enable the issuance of long-term loans on the capital market. The programme is aimed at extending the duration of the Group's financing and reducing the utilization rate of the existing commercial paper programme.
Saab has established a Medium Term Note programme (MTN) of SEK 3 billion to issue long-term loans on the capital market. Under the terms of this programme Saab has issued bonds and Floating Rate Notes (FRN) of SEK 1.1 billion, maturing in December 2013.
Saab already has a Swedish commercial paper programme of SEK 5 billion. The bond issue is aimed at extending the duration of the Group's financing and thereby reducing short-funding and reducing the utilization rate of the commercial paper programme.
"The capital market has improved considerably and there has been good interest in our issue under the programme. Now we are further diversifying our sources of funding and increase our financial flexibility," says Patrik Tolf, Saab's Group Treasurer.
The terms of the issue are three months STIBOR +180 basis points with maturity in December 2013. The bonds will be listed on the NASDAQ OMX once the MTN prospectus has been approved by the Swedish Financial Supervisory Authority.
The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was released for publication on November 30 at 15.00 (CET).