Terms for introduction of a new 20-year bond

10 February 2012 - Press release

The Swedish National Debt Office will introduce a new nominal government bond in March with a 20-year maturity through syndication. The loan will be announced by our lead managers. The introduction will be made solely through exchanges as the government borrowing requirement is limited.

The loan - SGB 1056 X% 1 Jun 32 - was communicated in a press release on 21 December last year. The introduction is scheduled for the week beginning of 12 March, 2012. 

  • At the time of launch, the lead managers will announce other information such as coupon and interest rate terms. The interest rate terms will be set to be fair in relation to the market pricing. Thus, the terms will not be determined in order to achieve a fully subscribed exchange. 

  • The maturity of the loan will be June 1, 2032. 

  • Indicated issue volume is SEK 10-20 billion. The upper limit is SEK 20 billion. 

  • The loans eligible for exchange are SGB 1047 5% 1 Dec 20 and SGB 1054 3.5% 1 Jun 22. Investors may choose any combination of the two loans. 

  • The exchange will be made in notional terms, i.e. we buy back the same notional amount of SGB 1047 and/or SGB 1054 s as we issue in SGB 1056. Hence, in the bidding process both interests to sell and buy will have to be specified. 

  • Lead managers for the syndication are the Debt Office's Primary Dealers, i.e. Barclays Capital, Danske Markets, Handelsbanken Capital Markets, Nordea Markets, Nykredit Markets, Royal Bank of Scotland, SEB and Swedbank. 

The syndication process will follow international standards. This means that the bids will be placed through a joint lead manager pot irrespective to which lead manager the bid is submitted. The Debt Office will have full disclosure of the bidding.

The Nasdaq OMX Fixed Income index and the Handelsbanken index will be updated at the time of launch to facilitate for investors who follow index.

We will support the liquidity in the new bond with our market commitments in nominal bonds in the same way as for other government securities. The secondary market is organized in accordance with the Primary Dealer agreement.

For more information, please contact:

Anna Sjulander, Funding manager, + 46 8 613 47 77
Maria Norström, Head of Funding, +46 8 613 46 35