Terms for switches to inflation-linked bond SGB IL 3110

17 December 2014

The Swedish National Debt Office introduces a new inflation-linked government bond, SGB IL 3110 X% 1 Jun 2019. The auction details and the coupon will be published on 29 January 2015 at 16.20.

On 5 February 2015, SEK 1 billion will be issued in a first auction of SGB IL 3110. Thereafter the Debt Office is offering switches from SGB IL 3107 0,5% 1 Jun 2017 to the new bond to quickly build up volume. The switches will be made price risk neutral [1] and cash neutral [2].

Switches

 

Fri 6 Feb
Cash neutral

Mon 9 Feb
Risk neutral

Time for yield on buy-back loan

10.45

10.45

Time for auction cut-off

11.00

11.00

Time for auction result

11.03

11.03

SNDO buys amount (SEK mn) [3]  

2 900

3 600

SNDO buys loan

IL 3107

IL 3107

SNDO sells amount (SEK mn)

3 000

2 000

SNDO sells loan

IL 3110

IL 3110

The bid yield on the buy-back loan will be published at 10:45 a.m. on riksgalden.se on the day of the auction.

Bids must be placed before 11:00 a.m. on the day of the auction. The results will be published around 11:03 a.m. or somewhat later. Bidding is only possible through primary dealers.

The new bond was announced in the publication Central Government Borrowing – Forecast and Analysis 2014:3 on 9 December 2014.

For more information, please contact:
Maria Norström, Head of Funding, +46 (0)8 613 46 35
Magdalena Belin, Head of Analysis, +46 (0)8 613 52 28



[1] The market value of the purchase and sales volume multiplied by the modified duration of each respective bond shall be equal.

[2] The market value of the purchase and sales volume of each bond shall be equal.

[3] The stated nominal volume of the buy-back loan is only an approximation calculated on the basis of today's yields.