Terms for exchanges to a new government bond

9 December 2010 - Press release

The Swedish National Debt Office is introducing a new government bond (loan 1054) maturing on 1 June, 2022. See terms of sale on www.riksgalden.se. The auction terms will be published on Wednesday, 2 February at 4.20 pm. The coupon will also be published then. The loan was announced in the publication Central Government Borrowing - Forecast and Analysis 2010:3 in November.

On Wednesday, 9 February SEK 2 billion of loan 1054 will be issued in a first auction. To quickly build up volume in the new loan, the Debt Office is offering exchanges for loan 1052 (4.25 %, 12 March, 2019) and 1047 (5.0 %, 1 December, 2020), against in total SEK 20 billion in loan 1054 . The exchanges in loans 1052 and 1047 will be made risk price neutral[1].

The exchanges will take place during the period 10 - 15 February (the four business days following the first auction) according to the following timetable:

Date for exchanges of loan 1054 Time for publishing yield on buy back loan Time for auction cut off Time for auction result SNDO buys amount (SEK mn) [2] SNDO buys loan SNDO sells amount (SEK mn) SNDO sells loan
Thu 10 feb 10.45 11.00 11.10 5,100 1047 5 000 1054
Fri 11 feb 10.45 11.00 11.10 6,300 1052 5 000 1054
Mon 14 feb 10.45 11.00 11.10 5,100 1047 5 000 1054
Tue 15 feb 10.45 11.00 11.10 6,300 1052 5 000 1054

 

The exchanges will be carried out in the form of auctions. The Debt Office will notify the bid yield on the buy back loan on the PMI page for auction details 15 minutes before the cut off of the auction. The result will be notified on the PMI page for auction results 10 minutes after the closing of the auction. Further details about the result will be available on the PMI page for exchange offers. The information will also be available on www.riksgalden.se.

The Debt Office is providing standing repo facility (T/N) in 1054, as well as in the other government securities, at 40 basis points under the Riksbank's repo rate.

For more information, please contact:

Magdalena Belin, Head of Analysis, +46 (0)8 613 52 28

Maria Norström, Head of Funding, +46 (0)8 613 46 35


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

[2] The stated nominal volume of loan 1047 and loan 1052 is only an approximation calculated on the basis of today's
yields.