IB Invest postpones interest payments and deepens Sweden’s real estate crisis

Stockholm

Many companies are forced to postpone the implementation of planned construction projects for the time being.

(Photo: dpa)

Stockholm The crisis on the Swedish real estate market that has been smoldering for months has intensified further: On Wednesday, IB Invest announced that it had postponed interest payments for hybrid bonds “indefinitely”.

This also puts SBB, one of Sweden’s largest real estate groups, under pressure. Hybrid bonds are securities with long maturities that are subordinated to unsecured debt securities. According to the terms of the hybrid bonds, IB Invest can unilaterally suspend one or more interest payments.

The holding company IB Invest of the entrepreneur Ilija Batljan is the largest shareholder of the real estate group SBB. The entrepreneur is also the head of SBB.

IB Invest holds 18.4 percent of the voting rights and 4.8 percent of the capital of SBB. At the beginning of May, SBB announced that it would suspend dividend payments to shareholders.

That was a heavy blow for IB Invest, which relies on the SBB payments to be able to settle its own debts.

The crisis could become a wildfire

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