Catella, the Sweden headquartered financial group, has appointed ABG Sundal Collier and Nordea Bank to advise it on a tap issue of up to SEK250m (€24.6m) linked to an existing SEK750m unsecured bond issue maturing in June 2022.
Should the tap complete, the money raised would be used for “general corporate purposes and to fund announced acquisitions” Catella stated.
An example of acquisitions is that announced in March 2018, when Catella said it was acquiring UK property and asset management company APAM via its Catella Property Fund Management business. That deal is expected to complete in the second half of 2018, subject to regulatory approval in Luxembourg, at which point the remainder of the roughly £18m price has to be paid in cash.
The tap also comes in context of Catella’s stated strategic business review announced earlier in June. This has been looking at the costs and capital structure of the group, because of regulatory burdens derived from the positioning of Catella Bank within the broader group. One area of business that has been growing is wealth management, where opportunities are spotted in Luxembourg because of peers from the Nordic region leaving the market. But the regulatory burden means that there are margin pressures. Catella’s card issuing operations are also under the microscope.