Sweden raises USD 2 billion in three-year bond at 1.742 %

29 March 2017 - Press release

Kingdom of Sweden raised USD 2 billion (approximately SEK 18 billion) in a new three-year benchmark at a yield of 1.742 per cent. The proceeds will be used to refinance loans to the Riksbank.

The transaction was priced at mid-swaps minus 6 basis points, which is the tightest spread of any benchmark USD transaction in 2017 year to date. A total of 56 investors took part with the bid volume exceeding USD 3.4 billion.

– It was positive to see such strong demand considering our six months’ absence from the dollar market, says Maria Norström, Head of Funding at the Swedish National Debt Office.

Terms and conditions

Issuer

Kingdom of Sweden

Size

USD 2 billion

Coupon

1.625 % s.a.

Maturity date

6 April 2020

Price

99.659 %

Yield

1.742 % s.a.

Spread versus USD mid swaps

Minus 6 basis points

Spread versus US benchmark

21.95 basis points

Lead managers

Barclays, Citigroup, NatWest Markets

Since the Debt Office released its latest issuance plan in February, the Ministry of Finance has published a proposal on the Riksbank’s financial independence. Should the proposal be approved by the Riksdag, the Debt Office’s foreign currency funding would be affected. The Debt Office will release a new issuance plan in June 2017.

Distribution by investor

 Chart of distribution by investor

Distribution by region

Chart of distribution by region

Contact

Anna Sjulander, Deputy Head of Funding, +46 (0)8 613 47 77