Kingdom of Sweden issues a new Eurodollar benchmark bond to the Riksbank

1 December 2010 - Press release

 

The Kingdom of Sweden raised 2 billion dollar (SEK 14 billion) in a new two-year benchmark bond.

To re-fund the Riksbank's loans in foreign currency, the Swedish National Debt Office has issued a new dollar bond in the international capital market.

During 2009, the Debt Office borrowed equivalent to SEK 95 billion in foreign currency on behalf of the Riksbank. Some of these loans mature in 2010. Today's dollar deal is the second bond issue this year through which the Debt Office raises funds in order to cover redeeming loans.

Further information can be obtained from the Debt Office's Central Government Borrowing report as of 16 November, 2010, published on www.riksgalden.se.

 - We are very pleased to have been able to issue such a sizable amount this late in the year. Despite the current turmoil due to concerns over sovereign debt in some countries, the deal became very successful. This says Maria Norström, Head of Funding at the Debt Office.

Terms and conditions

Issuer Kingdom of Sweden through SNDO
Size USD 2 billion
Coupon 0.625 %
Maturity 7 December, 2012
Price 99.820 %
Yield 0,716 %
Spread versus USD mid swaps minus 6 basis points
Lead managers Citi, Credit Suisse and Goldman Sachs International

Central banks bought 86 per cent of the bond. The distribution by regions was well spread - 39 per cent to Asia, 34 per cent to Europe, 18 per cent to the Americas and the balance to other areas.

Comments by the lead managers:

- The success of this transaction in highly volatile market conditions reflects the high credit quality and economic strength of the Kingdom of Sweden.

For more information, please contact:

Maria Norström, Head of Funding, +46 8 613 46 35