Kingdom of Sweden issues a Eurobond at another record low level

14 February 2012 - Press release

The Kingdom of Sweden issues EUR 1.5 billion euro (approximately SEK 13 billion) in a new three-year benchmark. The loan is part of the on-lending program to the Riksbank.  The yield is the lowest ever syndicated three year euro deal.

The deal was oversubscribed already within an hour of books opening. The final book size was over EUR 2.8 billion and bids from over 80 investors.

- Once again we seem have to enjoyed the flight to quality, allowing us to price at very attractive levels compared to other sovereigns and swaps.  I was surprised to see such a strong demand on a day like this with slow turnover, says Maria Norström, Head of Funding.

Central banks bought 56 per cent of the issue. Asset managers and corporates bought 19 and 14 per cent respectively. The balance was bought by banks, pension- and insurance companies. Over 50 per cent of the bond was sold to European investors outside the Nordic area and 27 per cent to Africa and Middle East. The remainder went to Asia, the Nordics and the Americas.

The lead managers agree that the demand for Swedish government securities continues to be strong:

- This transaction represents the tightest ever pricing for a three year syndicated Euro SSA transaction, reflecting Sweden's safe haven sovereign status. The speed of book building was all the more impressive as Bunds sold off on the positive developments from Greece.

Terms and conditions

Issuer Kingdom of Sweden
Size EUR 1.5 billion
Coupon 0.625 %
Maturity 20 February, 2015
Price 99.704 %
Yield 0.725 %
Spread versus Benchmark        Plus 28 basis points
Spread versus Euro mid swaps Minus 54 basis points
Lead managers Barclays Capital, Citigroup and J.P. Morgan
 
For more information, please contact:
 
Maria Norström, Head of Funding, +46 8 613 46 35