Sweden raises SEK 10 billion at 1.386 % with 50-year bond
The Kingdom of Sweden raised SEK 10 billion at a yield of 1.386 per cent in the planned sale of a 50-year government bond. The new bond will be the longest outstanding loan in Sweden’s central government debt.
More than 80 investors participated in the syndicated sale with the total bid volume reaching above SEK 52 billion. Syndication means that a group of banks executes the transaction at terms approved by the issuer. The final pricing was fixed at 45 basis points above the yield on the Swedish government bond that was formerly the longest, maturing in just over 24 years.
– I am pleased that we were able to extend the Swedish government bond curve to 50 years through this transaction. With Sweden’s strong state finances as a foundation, we have again shown that we can attract a broad investor base, says Johan Bergström, Acting Head of Funding at the Swedish National Debt Office.
The Debt Office will gradually build up the outstanding stock of the new bond SGB 1064 by issuing smaller volumes in regular auctions.
Terms and conditions
| Issuer | Kingdom of Sweden |
| Size | SEK 10 billion |
| Coupon | 1.375 % |
| Maturity date | 23 June 2071 |
| Price | 99.605 % |
| Yield | 1.386 % |
| Yield of SGB 1064 versus yield of SGB 1063 maturing on 24 November 2045 | 45 basis points |
| Lead managers | Barclays, Danske Markets, Handelsbanken Markets, Natwest Markets, Nordea Markets, SEB, Swedbank |
Distribution by investor type
| Fund managers | 29 % |
| Insurance and pension companies | 27 % |
| Hedge funds | 18 % |
| Central banks/ public institutions | 17 % |
| Banks | 9 % |
Distribution by region
| Sweden | 39 % |
| UK | 20 % |
| Other Nordics | 15 % |
| Asia & Middle east | 14 % |
| Rest of Europe | 12 % |
Contact
Johan Bergström, Acting Head of Funding, +46 8 613 45 68
Press office, press@riksgalden.se, +46 8 613 47 01