Swedish Landlord Sees Hybrid Bond Call as ‘Honorable’ Decision

A Swedish landlord chose to repay a hybrid bond early because that was the honorable thing to do, the firm’s finance chief said after the decision sparked a jump in its price.

Akelius Residential Property AB announced the exercise of a call option on a subordinated bond maturing in 2078 on Thursday. The note had been indicated at 96.4 cents on the euro before the decision, indicating that investors thought there was a strong chance the firm might opt to skip it.

“In Akelius we try to act honorable if we can,” Chief Financial Officer Leiv Synnes said in a ...