The Kingdom of Sweden raised 1 billion dollars (SEK 7.2 billion) in a new three-year benchmark bond.
For the second time this year, the Kingdom of Sweden issued in the dollar market. The lack of sovereign supply in dollar and strong demand for safe-haven assets meant there was a good opportunity to tap the market with a three-year bond at an attractive level.
Together with the 1.4 billion dollar deal issued earlier in April, a significant part of the Debt Office's foreign currency borrowing requirement is now covered. The next forecast will be published on 16 June.
- We are very pleased with the outcome considering the European turmoil with concerns of sovereign debt in some countries. We were able to tighten the price and thereby reaching our target since the order book grew quickly in size and quality, says Maria Norström, Head of Funding at the Swedish National Debt Office.
Terms and conditions
| Issuer | Kingdom of Sweden through SNDO |
| Size | USD 1 billion |
| Coupon | 1.75 % |
| Maturity | 7 May, 2013 |
| Price | 99.829 |
| Yield | 1.809 % |
| Spread versus USD mid swaps | minus 2 basis points |
| Lead managers | Barclays Capital and RBS |
Central banks bought 79 per cent of the bond. The distribution by regions was well spread - 27 per cent to Asia, 27 per cent to Europe, 26 per cent to the Middle East and Africa, and the balance to other areas.
Comments from the lead managers: "A liquid, current coupon 3-year security from the Kingdom of Sweden is a perfect instrument for investors in the current market conditions, being the preferred maturity for central banks in Asia and the Middle East. This is the tightest pricing versus mid-swaps for any European sovereign this year in the US dollar market."
For more information, please contact:
Maria Norström, Head of Funding, +46 8 613 46 35