Kingdom of Sweden issues dollar at record low yield

11 May 2012 - Press release

The Kingdom of Sweden issues 2.25 billion dollar (about SEK 15.5 billion) in a new three-year benchmark bond to the Riksbank. The yield is the lowest syndicated three year dollar deal this year.

-       The deal was oversubscribed already an hour after the opening of the bidding. We have once again benefited from investors looking for high quality securities, says Head of Funding Maria Norström.

Bid volume was just over 3 billion dollar. Central banks bought 46 per cent of the issue. Banks and pension- and insurance companies bought 21 and 12 per cent respectively. The balance was bought by asset managers, corporates and private banks. About 31 per cent of the bond was sold to Africa and the Middle East, 24 per cent to Europe and 18 per cent to the Americas. The remainder went to Asia and other European countries.

Market participants agree that the appetite for Swedish government securities continues to be very strong:

-       Investors are looking for Swedish government bonds. Sweden is a rare borrower with the highest creditworthiness, immune to the volatility in the Eurozone. Sweden can take advantage of being one of few issuers that can offer dollar bonds with short maturity at a time when the demand for safe haven credits is large.

Terms and conditions

Issuer Kingdom of Sweden
Size USD 2.25 billion
Coupon 0.375%
Maturity 18 May, 2015
Price 99.634%
Yield 0.498%
Spread versus Benchmark plus 12 basis points
Spread versus dollar mid swaps minus 19 basis points
Lead managers Barclays, Credit Suisse, Goldman Sachs

 

For more information, please contact:                           

Anna Sjulander, Deputy Head of Funding, +46 8 613 47 77