Terms for exchanges to inflation-linked bond SGB IL 3109

11 December 2013 - Press release

The Swedish National Debt Office introduces a new government bond SGB IL 3109 X% 1 Jun 2025. The auction details and the coupon will be published on Thursday 30 January 2014 at 16.20.

On Thursday, 6 February SEK 1 billion will be issued in a first auction in loan SGB IL 3109. At the same time the Debt Office is offering exchanges from loan SGB IL 3102 4% 1 Dec 2020 and SGB IL 3104 3.5% 1 Dec 2028 to the new loan to quickly build up volume. The exchanges will be made price risk neutral[1] and cash neutral[2].

Exchange terms IL 3109
Time for exchanges of loan IL 3109 Friday
7 February,
Risk neutral

Monday
10 February,
Cash neutral

 Tuesday
11 February
Cash Neutral

Time for buy-back yield 10.45 10.45 10.45
Time for auction cut-off 11.00 11.00 11.00
Time for auction result  11.03 11.03 11.03
SNDO buys amount (SEK mn) [3] 2 600 3 000 3 100
SNDO buys loan IL 3104 IL 3104 IL 3102
SNDO sells amount (SEK mn) 5 000 5 000 5 000
SNDO sells loan IL 3109 IL 3109 IL 3109

The loan was announced in the publication Central Government Borrowing – Forecast and Analysis 2013:3 in October. See terms of sale on www.riksgalden.se.

The bid yield on the buy-back loan will be published at 10.45 at our web site on the day of the auction.

Bids must be placed before 11.00 on the day of the auction. The results will be published around 11.03. However, the auction result may be published somewhat later. Bidding is only possible by primary dealers.

For more information, please contact:
Maria Norström, Head of Funding, +46 (0)8 613 46 35
Magdalena Belin, Head of Analysis, +46 (0)8 613 52 28


[1] The market value of the purchase and sale volume multiplied by the modified duration of each respective bond shall be equal.

[2] The market value of purchase and sales volume of each bond shall be equal.

[3] The stated nominal volume of the buy-back loan is only an approximation calculated on the basis of current yields.