Kingdom of Sweden lends 2 billion dollar to the Riksbank

18 March 2014 - Press release

Kingdom of Sweden issues USD 2 billion (approximately SEK 13 billion) in a new three-year benchmark to a yield of 0.87 per cent. The proceeds are part of the rollover of earlier on-lending to the Riksbank.

This is the first public dollar issue in 2014. The orderbook was oversubscribed quickly, totalling more than 3.25 billion. No sovereign issuer has so far this year been able to price as tight to the swap curve in dollar. 

– It is a great start of the year for the Kingdom. Both volume and price illustrated strong investor demand, says Maria Norström, head of funding.

The total funding requirement for foreign currency bonds totalls the equivalent of SEK 69 billion in 2014, of which the central government accounts for SEK 26 billion. The refinancing of earlier on-lending to the Riksbank amounts to SEK 43 billion.

Central banks bought 75 per cent of the deal. Banks represented 12 per cent while the balance went to asset managers and pension- and insurance companies. Around 48 per cent of the bond was sold to Asian investors, 19 per cent to Europe and 17 per cent to the Middle East and Africa. The remainder was placed with North American investors.

 

Terms and conditions

Issuer

Kingdom of Sweden

Size

USD 2 billion

Coupon

0.75 % payable s.a

Maturity date

12 April, 2017

Price

99.640 %

Yield

0.870 % s.a.

Spread versus USD mid swaps

Minus 3 basis points

Spread versus US benchmark

10.35 basis points

Lead managers

Citigroup, Credit Suisse, Nordea

For more information, please contact:
Anna Sjulander, investors relations, +46 8 613 47 77
Unni Jerndal, press relations, +46 8 613 45 96