Printer Friendly

Wihlborgs Fastigheter reviews interest rate risk; restructures interest-rate derivative portfolio.

NORDIC BUSINESS REPORT-December 7, 2018-Wihlborgs Fastigheter reviews interest rate risk; restructures interest-rate derivative portfolio


Wihlborgs Fastigheter AB (Wihlborgs)(STO:WIHL), a property company that focuses on commercial properties in the Oresund region, announced on Thursday the restructuring of its portfolio of interest-rate derivatives following a review of the company's management of interest-rate risk.

Under this restructuring, existing interest-rate derivatives were cancelled and new interest-rate derivatives were entered into. As a result, a deficit value of approximately SEK940m was realised.

After the transactions, the average fixed-interest period is 3.5 years. The average interest rate in the loan portfolio, including the effect of interest-rate derivatives, is now 1.39%, as compared to 2.35% as of end September 2018. The average loan maturity is six years.

Wihlborgs' total loan portfolio amounts to about SEK22.9bn and the interest-rate risk has in recent years been managed through an interest-rate derivative portfolio with a nominal value of SEK9.5bn.

The derivative portfolio has consisted of both regular interest-rate swaps and structured instruments. As a part of restructuring, all existing interest-rate derivatives were cancelled. New derivative positions with a nominal value of SEK9.4bn have been entered into and these consist only of regular interest-rate swaps and no structured derivates are currently included in the portfolio.


((Comments on this story may be sent to

COPYRIGHT 2018 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2018 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Nordic Business Report
Date:Dec 7, 2018
Previous Article:Arise's power production in November 2018 below budget.
Next Article:Danske Bank confirms negotiations on contemplated sale of pension activities in Sweden.

Terms of use | Privacy policy | Copyright © 2022 Farlex, Inc. | Feedback | For webmasters |