Heimstaden AB (publ) — Capital/Financing Update 2021

Jan 13, 2021

THIS DOCUMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF ARTICLE 7(1) OF THE MARKET ABUSE REGULATION (EU) 596/2014.

NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR TO ANY U.S. PERSON (AS DEFINED IN REGULATION S OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED) (THE "SECURITIES ACT") OR IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS DOCUMENT. THE DISTRIBUTION OF THIS DOCUMENT IN CERTAIN JURISDICTIONS (IN PARTICULAR, THE UNITED STATES AND THE UNITED KINGDOM) MAY BE RESTRICTED BY LAW.

Heimstaden AB (publ)

Tender Information Document in respect of a tender offer for Heimstaden AB (publ)'s up to SEK 1,250,000,000 senior unsecured floating rate notes 2017/2021 ISIN SE0009895055 (the "Notes")

Heimstaden AB (publ), Reg. No. 556670-0455 ("Heimstaden" or the "Issuer") today announces its invitation to the holders of the Notes (including any beneficial owners who hold their Notes via nominees or custodians) (the "Noteholders") to tender their Notes of up to an aggregate amount equal to the issued amount of the Subsequent Bonds (as defined below) for purchase by the Issuer for cash (the "Tender Offer") subject to the satisfaction of the New Financing Conditions (as defined below) being met. The Issuer has appointed Nordea Bank Abp ("Nordea") and Swedbank AB (publ) ("Swedbank") to act as dealer managers and joint bookrunners (the "Dealer Managers" and "Joint Bookrunners") in connection with the Tender Offer.

In connection with the Tender Offer, the Issuer intends to issue SEK denominated senior unsecured subsequent bonds through tap issues under its existing bonds 2020/2024 (ISIN SE0014991345) and 2020/2025 (ISIN SE0014991352), each with a framework of SEK 5,000,000,000 (the "Subsequent Bonds"), subject to market conditions. The Issuer has mandated Nordea and Swedbank as joint arrangers and bookrunners in respect of the issuance of the Subsequent Bonds.

The Issuer intends to use the proceeds from the Subsequent Bonds towards the financing of the Tender Offer and refinancing of the Bonds (including the possibility of voluntary total redemption (call option) in accordance with clause 9.3.2 in the terms and conditions of the Bonds).

The Tender Offer is made on the terms and subject to the conditions set out below.

Purchase price

Subject to the terms and conditions set out in this tender information document and the Transaction Cap (as defined below), the Issuer offers to purchase Notes of up to an aggregate amount equal to the issued amount of Subsequent Bonds at the purchase price of 100.5 per cent. of the nominal amount of the Notes (the "Purchase Price").

Description of the Notes / ISIN / Issued Amount / Outstanding Amount / Minimum Denomination / Purchase Price

2017/2021 Sr Unsec FRN / SE0009895055 / SEK 1,250,000,000 / SEK 1,250,000,000 / SEK 1,000,000 / 100.5 %

The Issuer will also pay an amount equal to any accrued and unpaid interest on the Notes on the Settlement Date (as defined below) in accordance with the terms and conditions of the Notes ("Accrued Interest").

Deadline

The Tender Offer expires at 12:00 CET on 19 January 2021, unless extended, re-opened, withdrawn or terminated at the sole discretion of the Issuer (the "Expiration Date"). The Issuer will announce the results and (acting in its sole and absolute discretion) whether any Notes will be accepted under the Tender Offer as soon as reasonably practicable after the pricing of the Subsequent Bonds. Settlement of the Tender Offer is expected to occur at or around 26 January 2021 (the "Settlement Date"). Settlement of the transactions pursuant to the Tender Offer will occur as a secondary trade via the Dealer Managers.

Subject to applicable law, the Issuer may, in its sole and absolute discretion, extend, re-open, amend or waive any condition of or terminate the Tender Offer at any time. Noteholders are advised to carefully read this document for the details of and information on the procedures for participating in the Tender Offer.

Purpose of the Tender Offer

The Tender Offer is being made as part of the Issuer's commitments to exercise active management of its balance sheet. The purpose of the Tender Offer is to pro-actively manage the Issuer's upcoming redemptions and to lengthen and diversify its debt maturity profile.

Transaction Cap

The amount of Notes accepted for tender by the Issuer will be capped at an aggregate amount equal to the issued amount of Subsequent Bonds (the "Transaction Cap"). If the Issuer decides to accept for purchase valid tender instructions made pursuant to the Tender Offer and the aggregate nominal amount of Notes validly tendered pursuant to the Tender Offer is greater than the

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Transaction Cap, the Issuer will accept such Notes for purchase on a pro-rata basis and on the principles described below, subject to the minimum denomination of SEK 1,000,000 for the Notes (the "Minimum Denomination").

In the event of any scaling in the acceptance of Notes to be purchased, the Issuer will firstly accept tender instructions from investors who subscribe for Subsequent Bonds (see details on amount below under the heading titled "Priority in tender acceptance"). In respect of tender instructions for Notes that have not been priority allocated in accordance with the aforesaid, the Issuer will thereafter accept all other tender instructions of Notes on a pro-rata basis. The acceptance of tender instructions of Notes will be rounded to a multiple of SEK 1,000,000. In cases where such pro-rata scaling results in an amount below the Minimum Denomination the Issuer may elect to accept in full the tender instruction, accept only the Minimum Denomination or reject in full the tender instruction. Any scaling made by the Issuer is binding on all Noteholders who validly tendered their Notes.

Priority in new issue

A Noteholder who submits a valid tender instruction will be eligible to receive a priority in the allocation of the Subsequent Bonds if such order in the Subsequent Bonds is an integral multiple of the minimum denomination of the Subsequent Bonds, being SEK 1,250,000, and provided that the Noteholder is an eligible buyer of the Subsequent Bonds given the target market for the Subsequent Bonds in accordance with Directive 2014/65/EU (MiFID II) and the applicable selling restrictions. Such priority in allocation will match in size the nominal volume submitted and accepted for tender, subject to eligibility with the minimum denomination requirements of the Subsequent Bonds. Noteholders tendering the minimum amount of the Notes of SEK 1,000,000, will be eligible to receive priority allocation of the Subsequent Bonds of SEK 1,250,000. However, where the amount submitted for tender is (i) above SEK 1,250,000 and (ii) not an integral multiple of the minimum denomination of the Subsequent Bonds, being SEK 1,250,000, the priority in the Subsequent Bonds will be scaled down to the nearest multiple of SEK 1,250,000. Any scaling made by the Issuer is binding on all Noteholders who validly tendered their Notes.

Priority in tender acceptance

Noteholders who submit both (i) a valid and accepted order in and are eligible buyers of the Subsequent Bonds and (ii) a valid tender instruction may be eligible to receive priority in the Tender Offer up to the amount of Subsequent Bonds subscribed for. Such priority will be decided upon by the Issuer in its sole and absolute discretion, subject to the above requirements and considerations mutatis mutandis.

New Financing Conditions

The Issuer's acceptance of Notes validly tendered for purchase pursuant to the Tender Offer is conditional upon, in the absolute and sole discretion and determination of the Issuer, (i) the terms and conditions of the Subsequent Bonds being satisfactory to the Issuer, including, but not limited to, as to the price and volume of the Subsequent Bonds and (ii) the successful outcome of the issuance of Subsequent Bonds (including the receipt of funds by the Issuer), which will enable the Issuer to finance the Purchase Price and Accrued Interest of the total amount of Notes validly tendered and accepted for purchase pursuant to the Tender Offer (together "New Financing Conditions").

For the avoidance of doubt, the Issuer is not under any obligation to accept any tender of Notes for purchase pursuant to the Tender Offer. Any tender of Notes for purchase may be rejected by the Issuer for any reason, and the Issuer is not under any obligation to Noteholders to furnish any reason or justification for refusing to accept a tender of Notes for purchase.

The Issuer's acceptance of Notes validly tendered in accordance with the terms and conditions of the Tender Offer will be irrevocable, but always subject to the Transaction Cap described above and the satisfaction of the New Financing Conditions.

Restrictions: No offer or sale of Subsequent Bonds

This document does not constitute an offer or a sale of the Subsequent Bonds. Nothing in this document constitutes an offer to sell or the solicitation of an offer to buy the Subsequent Bonds in the United States or any other jurisdiction. Securities may not be offered, sold or delivered in the United States absent registration under, or an exemption from the registration requirements of, the Securities Act. The Subsequent Bonds have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States and may not be offered, sold or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act). Investors who wish to buy Subsequent Bonds should contact their sales contact at the Dealer Managers to obtain all relevant documentation.

Participation

Noteholders can only participate in the Tender Offer by submitting a valid tender instruction. Only Noteholders who are clients of, and can execute a secondary trade upon settlement with Nordea or Swedbank with all required know your customer (KYC) and similar documentation in place to the satisfaction of such Dealer Manager may participate in this Tender Offer and Noteholders must contact any of the Dealer Managers to receive an application form that includes the details of how to participate in the Tender Offer. Tender instructions given via the application form are irrevocable by the Noteholders, except for in the limited circumstances described in the application form.

Noteholders should consult their own tax, accounting, financial and legal advisers regarding the suitability to themselves of the tax, accounting, financial, legal and regulatory consequences of participating in the Tender Offer.

Noteholders who do not participate in the Tender Offer, or whose Notes are not accepted for purchase by the Issuer, will continue to hold their Notes subject to the terms and conditions of the Notes.

To obtain an application form and participate in the Tender Offer please contact any of the Dealer Managers at the details below.

Placing fee

The Dealer Managers will be paid a fee by the Issuer in respect of the placement of the transaction relating to the Subsequent Bonds.

CONTACT INFORMATION

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Joint Bookrunners and Dealer Managers

Nordea Bank Abp
Email: nordealiabilitymanagement@nordea.com

Swedbank AB (publ)
Email: Syndicate@swedbank.se

The Issuer

Heimstaden AB (publ)
Adam Lindh, Head of Finance
adam.lindh@heimstaden.com

This document is released by the Issuer and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the Tender Offer described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this document is released, on behalf of the Issuer by the agency of the contact person set out above, at 09:00 CET on 13 January 2021.

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DISCLAIMER

This document contains important information which should be read carefully before any decision is made with respect to the Tender Offer. If any holder is in any doubt as to the action it should take or is unsure of the impact of the Tender Offer, it is recommended to seek its own financial and legal advice, including as to any tax consequences, from its stockbroker, bank manager, solicitor, accountant or other independent financial or legal adviser. Any holder whose Notes are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee or intermediary must contact such entity if it wishes to tender such Notes pursuant to the Tender Offer. Neither the Issuer nor the Dealer Managers nor their respective directors, employees or affiliates makes any recommendation as to whether holders of Notes should tender Notes for purchase pursuant to the Tender Offer.

Offer and Distribution Restrictions

This document does not constitute an invitation to participate in the Tender Offer in any jurisdiction in which, or to any person to or from whom, it is unlawful to make such invitation or for there to be such participation under applicable securities laws. The distribution of this document in certain jurisdictions may be restricted by law. Persons into whose possession this document comes are required by each of the Issuer and the Dealer Managers to inform themselves about and to observe any such restrictions.

United States

The Tender Offer is not being made and will not be made, directly or indirectly, in or into, or by use of the mails of, or by any means or instrumentality of interstate or foreign commerce of, or of any facilities of a national securities exchange of, the United States or to any U.S. Person (as defined in Regulation S of the United States Securities Act of 1933, as amended (each a "U.S. Person")). This includes, but is not limited to, facsimile transmission, electronic mail, telex, telephone, the internet and other forms of electronic communication. Accordingly, copies of this document and any other documents or materials relating to the Tender Offer are not being, and must not be, directly or indirectly, mailed or otherwise transmitted, distributed or forwarded (including, without limitation, by custodians, nominees or trustees) in or into the United States or to a U.S. Person and the Notes cannot be tendered in the Tender Offer by any such use, means, instrumentality or facility or from or within or by persons located or resident in the United States or by any U.S. Person. Any purported tender of Notes in the Tender Offer resulting directly or indirectly from a violation of these restrictions will be invalid and any purported tender of Notes made by a person located in the United States, a U.S. Person, by any person acting for the account or benefit of a U.S. Person, or by any agent, fiduciary or other intermediary acting on a non-discretionary basis for a principal giving instructions from within the United States will be invalid and will not be accepted.

Each holder of Notes participating in the Tender Offer will represent that it is not a U.S. Person, it is not located in the United States and is not participating in the Tender Offer from the United States, or it is acting on a nondiscretionary basis for a principal located outside the United States that is not giving an order to participate in the Tender Offer from the United States and who is not a U.S. Person. For the purposes of this and the above paragraph, "United States" means the United States of America, its territories and possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands), any state of the United States of America and the District of Columbia.

United Kingdom

This document and any other documents or materials relating to the Tender Offer is not being made, and such documents and/or materials have not been approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000, as amended. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom falling within the definition of investment professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Financial Promotion Order")) or any other persons to whom it may otherwise lawfully be made under the Financial Promotion Order.

General

Neither this document nor the electronic transmission thereof constitutes an offer to buy or the solicitation of an offer to sell Notes (and tenders of Notes for purchase pursuant to the Tender Offer will not be accepted from holders) in any circumstances in which such offer or solicitation is unlawful. In those jurisdictions where the securities, blue sky or other laws require the Tender Offer to be made by a licensed broker or dealer and the Dealers Managers or any of their affiliates are such a licensed broker or dealer in any such jurisdiction, the Tender Offer shall be deemed to be made by such affiliate, as the case may be, in such jurisdiction.

Further, the Tender Offer does not constitute or form part of (i) a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public and admitted to trading on a regulated market, and repealing Directive 2003/71/EC, nor (ii) a tender offer document as referred to in Chapter 2 a of the Swedish Financial Instruments Trading Act (Sw. lag om handel med finansiella instrument (1991:980)). Each holder participating in the Tender Offer will be deemed to give certain other representations in respect of the other jurisdictions referred to above and generally as set out in the application form for participating in the Tender Offer available from the Dealer Managers. Any tender of Notes for purchase pursuant to the Tender Offer from a holder that is unable to make these representations will not be accepted.

The Issuer reserves the right, in its sole and absolute discretion, to investigate, in relation to any tender of Notes for purchase pursuant to the Tender Offer, whether any such representation given by a holder is correct and, if such investigation is undertaken and as a result the Issuer determines (for any reason) that such representation is not correct, such tender or submission may be rejected.

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