Sweden raises USD 2.75 billion in two-year bond at 1.525 %

18 July 2017 - Press release

Kingdom of Sweden raised USD 2.75 billion (approximately SEK 23 billion) in an issue of two-year bonds at a yield of 1.525 per cent. The proceeds will be used to refinance loans to the Riksbank.

The yield in the transaction is 6 basis points below mid-swaps. The total bid volume exceeded USD 3.75 billion with 66 investors taking part.

– We saw an attractive opportunity and it was positive to see such strong demand, says Anna Sjulander, Deputy Head of Funding at the Swedish National Debt Office.

Terms and conditions

Issuer

Kingdom of Sweden

Size

USD 2.75 billion

Coupon

1.5 % s.a.

Maturity date

25 July 2019

Price

99.951 %

Yield

1.525 % s.a.

Spread versus USD mid swaps

Minus 6 basis points

Spread versus US benchmark

17.3 basis points

Lead managers

Goldman Sachs International, HSBC, Nordea

 Including today’s issue the Debt Office has borrowed the equivalent of 40 SEK billion in foreign currency bonds this year. Another SEK 28 billion will be issued during the rest of the year, according to the latest borrowing plan that was published in June. All of this year’s borrowing in foreign currency bonds is used to refinance loans to the Riksbank.

Next year, the Debt Office assumes that the refinancing of the Riksbank loans will cease, in accordance with a Government proposal. The Debt Office then plans to issue SEK 17 billion in foreign-currency bonds on its own behalf, to retain a presence in the international capital market.  

Distribution by investor

Distribution investors

Distribution by region

Distribution regions

 

Contact

 

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