Sweden raises USD 2 billion in five-year bond at 1.37 %

31 August 2016 - Press release

Kingdom of Sweden raised USD 2 billion (approximately SEK 17 billion) in a new five-year benchmark at a yield of 1.37 per cent. The proceeds will be used to refinance loans to the Riksbank.

The transaction was priced at mid-swaps plus 17 basis points. That is the lowest spread this year for a five-year transaction of this size among comparable issuers. More than 40 investors took part with the total bid volume exceeding USD 2 billion.

– Market conditions were favourable and the orderbook grew rapidly. We are pleased to see that the bond was placed with several investor types around the world, says Maria Norström, Head of Funding at the Swedish National Debt Office.

Terms and conditions

Issuer

Kingdom of Sweden

Size

USD 2 billion

Coupon

1.25 % s.a.

Maturity date

8 September 2021

Price

99.422 %

Yield

1.37 % s.a.

Spread versus USD mid swaps

17 basis points

Spread versus US benchmark

20 basis points

Lead managers

Barclays, Citi, HSBC

The Debt Office plans to sell foreign-currency bonds for a total of SEK 59 billion in 2016. After today's transaction, which was the second one this year, SEK 25 billion of the total remains. All of the planned funding in foreign-currency bonds this year is made to refinance maturing loans to the Riksbank.

Distribution by investor 

 Graph showing distribution by investor

Distribution by region

Graph showing distribution by region

Contact

Johan Bergström, Funding Manager, +46 (0)8 613 45 68