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Third party research

Cibus: Issues successfully a SEK 700m three-year bond at 3-month STIBOR plus 595 bps - Nordea

Cibus Nordic Real Estate

This is a third party research report and does not necessarily reflect our views or values

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Cibus announced on Friday 26 August that it has issued senior unsecured notes in total of SEK 700m with a three year maturity with a floating interest rate of 3-month STIBOR plus 595 bps, replacing the SEK 600m 2023 bond with STIBOR plus 475 bps, i.e. an 120 bps higher spread. The majority of Cibus’ financing is secured bank loans (EUR 850m) with an average interest margin of 1.6% and maturity of 2.5 years, and here the company has seen minor changes in spreads. About 71% of the Company’s bank loans are interest-hedged. After the new bond issue, Cibus has EUR ~250m in bond financing, plus a EUR 30m hybrid. Assuming a 2 pp higher interest rate, Cibus has disclosed it would cut Cibus’ IFPM per share by 16%, assuming no increase in rents (all rents are CPI-indexed). We estimate that e.g. a 150 bps raise in average cost of debt (currently ~2.5%) and a 5% increase in rents would cut EPS by 16%. This news should be positive for Cibus given the current state of the credit market.
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