Terms for switches to inflation-linked bond SGB IL 3113

15 December 2016

The Swedish National Debt Office introduces a new inflation-linked bond SGB IL 3113 X% 1 Dec 27. The auction details and the coupon will be published on Thursday 26 January 2017 at 16.20.

The Debt Office will issue SEK 750 million of SGB IL 3113 in a first auction on
2 February, 2017. Thereafter switches to the new bond will be offered to quickly build up volume. The switches will be made price risk neutral[1] as well as cash neutral[2].

Switch auctions

 

Fri 3 Feb

Risk neutral

Mon 6 Feb

Cash neutral

 Tue 7 Feb

 Cash neutral

SNDO buys bond

SGB IL 3104

SGB IL 3109

SGB IL 3102

SNDO buys amount (SEK mn) [3]  

3 000

4 600

2 100

SNDO sells bond

SGB IL 3113

SGB IL 3113

SGB IL 3113

SNDO sells amount (SEK mn)

5 000

5 000

3 000

Time for yield on buy-back bond

10.45

10.45

10.45

Time for auction cut-off

11.00

11.00

11.00

Time for auction result

11.03

11.03

11.03

The new bond was announced in the publication Central Government Borrowing – Forecast and Analysis 2016:3 on 26 October, 2016.

The bid yield on the buy-back bond will be published at 10.45  on our website the day of the auction.

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 by primary dealers.

For more information, please contact:
Maria Norström, Head of Funding, +46 (0)8 613 46 35
Göran Robertsson, Head of Analysis, +46 (0)8 613 46 06



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

[2] The market value of purchase and sale 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.