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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

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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.

(EUR1.00=SEK10.23)

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Publication:Nordic Business Report
Date:Dec 7, 2018
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