Swedish National Debt Office borrows SEK 11 billion in 20-year bond

13 March 2012 - Press release

The Swedish National Debt Office has today issued a 20-year nominal bond in exchange for two short-dated bonds. The volume issued was SEK 11.0 billion. The exchange was made 0.46 percentage points above our 10-year bond.

The new loan, SGB 1056 2.25% 1 Jun 32, was sold to a yield of 2.275 percent. At the same time SEK 9,098.5 of SGB 1047 5% 1 Dec 20 and SEK 1,901.5 million of SGB 1054 3.5% 1 Jun 22 was bought to a yield of 1.715 and 1.815 percent.

In accordance with a dialogue with primary dealers and investors, we made the assessment that there was an interest in a new government bond with a 20-year maturity. As our borrowing requirement is limited, it was reasonable to conduct the sale with an exchange.

We had announced a volume in the range of SEK 10-20 billion. The volume issued reflected the demand, given our pricing.

The bond was sold through syndication where the lead managers jointly sold the bond on our behalf at the conditions approved by us. All primary dealers participated in the syndicate.  

In connection with the syndication we decided the terms of exchange to 46 basis points (0.46 percent) based on quantitative assessment of a reasonable and fair pricing.

The Government decided in the Guidelines for 2012 that the benchmark for borrowing maturities longer than 12 years should be SEK 60 billion. That would mean an increase in the current volume of approximately SEK 20 billion.

The Debt Office will not offer further issuance of the new bond in the near future.

For more information please contact:

Maria Norström, Head of Funding, +46 8 613 46 35

Anna Sjulander, Funding Manager, +46 8 613 47 77