Kingdom of Sweden issues dollar at record low yield

22 October 2012 - Press release

The Kingdom of Sweden issues 1 billion dollar (about SEK 6.6 billion) in a new three-year benchmark bond for the Riksbank. The yield is the lowest syndicated three year dollar deal this year.

– It was a very good result considering the limited spread to US Treasuries, says Head of Funding Maria Norström.

Market participants agree that the demand for Swedish government bonds is strong and Sweden is benefited from investors looking for safe haven securities. No sovereign issuer has in 2012 to date been able to price as tight to US Treasury.

Bid volume was 1.5 billion dollar. Central banks bought 61 per cent of the issue. Banks bought 30 per cent and asset managers 7 per cent. The balance was sold to pension- and insurance companies.

Around 32 per cent of the bond was sold to Europe (excluding Sweden), 23 per cent to Sweden, 16 per cent to Asia and 20 per cent to Africa and the Middle East. Investors in the Americas bought 9 per cent of the bond.

Terms and conditions
Issuer Kingdom of Sweden
Size Dollar 1.0 billion
Coupon 0.375%
Maturity 2012-12-21
Price 99.697
Yield 0.472%
Spread versus Benchmark plus 4.75 basis points
Spread versus Dollar mid swaps minus 7 basis points
Lead managers Barclays, Deutsche Bank, Citigroup

For more information, please contact:
Anna Sjulander, Deputy Head of Funding, +46 8 613 47 77