Other information
Significant events during the period
Peab has entered agreements for new credit facilities totaling SEK 7.4 billion
Peab has entered agreements for new credit facilities divided into two contracts. One is a three year credit facility for a total of SEK 7.0 billion and the other is an 18 month credit facility of SEK 400 million. The credit facility for SEK 7.0 billion runs until June 15, 2026 with the possibility of an extension for one plus one year. Four banks participate in the transaction: Nordea, Swedbank, SEB and Handelsbanken. The transaction is coordinated by Nordea. Peab has also entered an agreement for a bilateral credit facility with Nordea for SEK 400 million. The contract runs for 18 months and matures on December 15, 2024 with the possibility of an extension for another year. The credit agreements refinance the company’s existing credit facility and are prepared for sustainability linking. The loan contracts make up Peab’s long-term financing foundation and are complemented by capital market financing, other types of short-term financing and project-related credit.
Arbitration in the case of Mall of Scandinavia has been decided
A decision in the case between Peab and Unibail Rodamco Westfield regarding the contract for Mall of Scandinavia in Solna was handed down on June 30, 2023. The judgement entails a positive effect on Peab’s operating profit by SEK 400 million in the second quarter. The effect on pre-tax profit is SEK 790 million in the second quarter. Cash flow will be positively affected by approximately SEK 1,400 million in the third quarter.
Peab received the contract for Mall of Scandinavia in December 2010 and the mall was completed and ready for inauguration November 2015. Peab believed it was entitled to compensation for added expenses generated by extensive changes in the project made during the production phase. The parties could not agree on outstanding claims and transactions and arbitration commenced in 2017. The arbitration decision was announced on June 30, 2023.
The dispute is thereby over and there are no remaining risks related to the contract Mall of Scandinavia.
Significant events after the period
No significant events occurred after the end of the reporting period.
Holdings of own shares
At the beginning of 2023 Peab’s own B shareholding was 8,597,984 which corresponds to 2.9 percent of the total number of shares. No changes have taken place during the first half-year 2023.
Related parties
The character and extent of transactions with related parties is presented in the Annual and Sustainable Report 2022, note 41. For more information about transactions with related parties during the period see business area Project Development. No other new significant transactions have occurred during the first half-year 2023.
Swimming pool
Solna