Svensk Hypotekspension building new loan portfolio supported by DnB NOR Bank credit facility
After the successful issue last year of SEK 900 million mortgage-backed notes (backed by its then existing loan portfolio), Svensk Hypotekspension is now busy building a new portfolio of so called equity release mortgages (loans secured by real property or cooperative flats, with interest accumulating until the borrower moves permanently from the property or dies).
DnB NOR Bank and Svensk Hypotekspension entered into an agreement on 18 March 2011, pursuant to which DnB NOR makes available a secured credit facility of SEK 1.5 billion to a special-purpose vehicle owned by Svensk Hypotekspension. This credit facility will be used during the next years to fund the generation of a new loan portfolio in preparation of a further issue of mortgage-backed notes.
Svensk Hypotekspension was assisted by Mannheimer Swartling in this transaction. The team consisted of André Andersson, Anders Erasmie, Carl Brodén, Daniel Wessner and Vilhelm Mann.