Inaugural foreign currency bond with US distribution

26 May 2011 - Press release

The Kingdom of Sweden raises 1.5 billion dollar (SEK 9 billion) in a new three-year benchmark bond to the Riksbank. As a novelty, the bonds may be purchased by US-based investors.

- The terms are very attractive, the tightest priced SSA bond in 2011 to date. At the same time we managed to broaden the investor base. It was especially pleasing to see such a large distribution to the Americas. The total bid volume of 2.3 billion dollar showed that there was a significant interest to buy, says Maria Norström, Head of Funding.  

The dollar bond, which is the second of this year, regards refinancing of loans in foreign currency on-lent to the Riksbank. In 2009, the Debt Office borrowed corresponding to SEK 95 billion in foreign currency on behalf of the Riksbank. This coming Autumn an additional loan will mature. Further information can be obtained from the Debt Office's forecast as of 18 May, 2011,

Terms and conditions

Issuer Kingdom of Sweden through SNDO
Size USD 1.5 billion
Coupon 1.000 %  s.a.
Maturity 3 June, 2014
Price 99.770 %
Yield 1.078 % p.a.
Spread versus USD mid swaps minus 10 basis points
Lead managers Deutsche Bank and The Royal Bank of Scotland

Comments by the lead managers:

- Strong central bank and official institutions and balanced geographical distribution at this pricing level are testament to the comprehensive demand for Sweden's top credit quality amid continuing volatility in the markets.

Central bank and official institutions bought almost 75 per cent of the issue. As much as 28 per cent was placed in the Americas. The balance was sold to Europe, the Middle East and Asia.

The documentation includes the 144a clause which enables US-based investors to purchase the bonds in the primary market. The bonds may be cleared both in Europe and in the United States.

For more information, please contact:
Johan Bergström, Funding Manager, +46 8 613 47 77