In 2021, the major shareholder of SBB, through its holding company IB Invest, issued a “Green Bond” worth 1.35 billion Swedish kronor. However, today, almost 920 million kronor of that amount remains outstanding, as bondholders have demanded immediate repayment. This sudden turn of events has put Ilija Batljan, the owner of IB Invest, in a precarious position, given that all of his holding companies are heavily leveraged.
The troubles for Batljan reached a critical point on April 17th, when IB Invest reached out to bondholders, seeking debt forgiveness and a restructuring of the terms of the outstanding bonds. Despite their initial cooperation, bondholders now have the option to demand repayment of their investments.
The situation is further complicated by the fact that the Green Bond was initially set to mature in December 2024, but was extended to January 2026 last year through negotiations. As part of the new terms, bondholders agreed to receive interest payments “in kind,” meaning that the interest is added to the principal debt instead of being paid out in cash.
This turn of events has significant implications not only for Batljan and IB Invest but also for the broader financial market. The potential repercussions of default or restructuring could reverberate throughout the industry, impacting other investors and stakeholders. As the situation unfolds, all eyes will be on how Batljan navigates these challenges and whether a resolution can be reached to avoid further financial turmoil.