Kingdom of Sweden issues a euro at record low level

24 April 2014 - Press release

Kingdom of Sweden issues EUR 2.25 billion (approximately SEK 20 billion) in a new five-year bond to a yield of 0.819 per cent.

The Kingdom of Sweden issues EUR 2.25 billion in a new five-year benchmark. The transaction regards the state’s own funding and was priced at 2.5 and 3.5 basis points through Finland and the Netherlands respectively. Hence, the Kingdom continues to fund at lower rates than any other sovereign issuer within the Eurozone, Germany excluded.

– With short notice we were able to take advantage of a very attractive opportunity. As a consequence we saw a broad distribution to many different type of investors, says Maria Norström, head of funding.

Of this year’s total funding in foreign currency bonds of the equivalent of SEK 69 billion, close to 50 per cent has now been concluded.

Banks bought 51 per cent and central banks 23 per cent of the deal. Pension- and insurance companies represented 9 per cent while asset managers bought 8 per cent. The balance went to other types of investors. Around 27 per cent of the bond was sold to Benelux and French investors and the equivalent share went to other European countries except from the Nordic region. Nordic investors bought 22 per cent and Africa together with the Middle East 12 per cent of the bond. The remainder was placed with North American and Asian investors.

 

Terms and conditions

Issuer

Kingdom of Sweden

Size

EUR 2.25 billion

Coupon

0.750 %

Maturity date

2 May, 2019

Price

99.663 %

Yield

0.819 % p.a.

Spread versus EUR mid swaps

Minus 16 basis points

Spread versus EUR benchmark

19.3 basis points

Lead managers

Barclays, Danske Bank, Goldman Sachs and The Royal Bank of Scotland

For more information, please contact:
Anna Sjulander, Deputy Head of Funding, +46 8 613 47 77
Unni Jerndal, Head of Communication, +46 8 613 45 96