New 20-year nominal bond through syndication

21 December 2011 - Press release

The Swedish National Debt Office has after a dialogue with Primary Dealers and investors made the assessment that there is a distinct interest in a new 20-year government bond.

In order to create liquidity in the new loan, the volume should quickly be raised to SEK 10-20 billion. As our borrowing requirement is limited, the introduction will be made through exchanges. A candidate for exchange is the government bond SGB 1047 5% 1 Dec 20.

To effectively create sufficient liquidity, we intend to form a syndicate for the issuance. All Primary Dealers will be invited to participate. The syndicate will provide us with a proposal regarding maturity, volume, price and date of issuance.

The Debt Office uses syndication regularly when issuing bonds in foreign currency. This is a standard method often used internationally when issuing larger volumes. Syndication was also used when we introduced the 30-year bond SGB 1053 3.5% 30 Mar 39.

A new 20-year nominal bond also contributes to better liquidity in the inflation-linked market as it will make a reference point for the inflation-linked bond SGB IL 3104 3.5% 1 Dec 28.

An introduction of a 30-year inflation-linked bond will be put on hold. Our soundings have not indicated sufficient interest. Therefore we have no plans at present to issue such a bond.

For more information, please contact:

Maria Norström, Head of Funding, + 46 8 613 46 35
Thomas Olofsson, Head of Debt Management, +46 8 613 47 82