OSLO, Feb 16 (Reuters) - Swedish real estate group Fastator said on Friday it was in breach of some of its financial solvency covenants and that it would start negotiations with major bond holders to mitigate the situation.

The company's equity was worth an estimated 33% of its overall balance sheet at the end of 2023, Fastator said, below the minimum 45% mandated by the covenants.

As a result, bond holders would have the right to terminate their holdings when the annual report is released on Feb. 26, Fastator said in a statement.

"Fastator intends to start negotiations with the major holders of the bonds and in the near future initiate written procedures... with a request for approval regarding non-fulfilment of the solidity covenant," it added. (Reporting by Terje Solsvik, editing by Louise Rasmussen)