Terms for exchanges to a new inflation-linked bond

25 August 2011 - Press release

The Swedish National Debt Office is introducing a new inflation-linked bond (loan 3108) maturing on 1 June, 2022. The loan will have deflation protection. The base index for calculation of the inflation compensation is CPI for June 2011: 311.28. See terms of sale on www.riksgalden.se. The auction terms will be published on Thursday, 8 September at 4.20 pm. The coupon will also be published then. The loan was previously announced in the publication Central Government Borrowing - Forecast and Analysis 2011:1 in May.

On Thursday, 15 September SEK 750 million of loan 3108 will be issued in a first auction. To quickly build up volume in the new loan, we offer exchanges for loan 3105 (3.5 %, 1 December, 2015), 3102 (4 %, 1 December, 2020) and 3104 (3.5 %, 1 December 2028). The exchanges will be made in nominal amounts, i.e. we buy the same nominal amount as we issue in 3108.

The exchanges will take place during the period 16-20 September (three days after the first auction) according to the following timetable:

Date for exchanges of loan 3108 Friday 16 September Monday 19 September Tuesday 20 September
Time for publishing yield on buy back loan 10:45 10:45 10:45
Time for auction cut off 11:00 11:00 11:00
Time for auction result 11:10 11:10 11:10
SNDO buys amount (SEK mn) 5,000 5,000 5,000
SNDO buys loan 3102 3104 3105
SNDO sells amount (SEK mn) 5,000 5,000 5,000
SNDO sells loan 3108 3108 3108

The exchanges will be carried out in the form of auctions. The bid yield on the buy-back will be published 15 minutes before the cut off of the auction on our web site www.riksgalden.se and on the PMI page for auction details. 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.

We are providing market support repos (T/N) in 3108, as well as in the other government securities, at 40 basis points under the Riksbank's repo rate.

For more information, please contact:

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

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