Terms for switches in inflation-linked bond SGB IL 3107

21 April 2016

As a market commitment, the Debt Office offers switches amounting to a total of approximately SEK 5 billion before SGB IL 3107 0.5% 1 Jun 17 becomes shorter than one year. The switch auctions will be held on 20 and 23 May.

The offered bond in the switch auctions is SGB IL 3110 0.125% 1 Jun 19. The first auction will be made cash neutral[1] and the second price risk neutral[2].

Switch auctions

 

Fri 20 May
Cash neutral

Mon 23 May
Price risk neutral

SNDO sells bond

 3110

 3110

SNDO sells amount (SEK mn)

2 000

1 250

SNDO buys bond

 3107

 3107

SNDO buys amount (SEK mn)[3]

1 992

 3 502

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

The bid yield on the buy-back bond SGB IL 3107 will be published at 10:45 a.m. on the day of the auction on riksgalden.se/borrowing.

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

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 volumes of each bond shall be equal.

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

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