A first issue of SEK 4 billion will take place at the auction on September 1. To build up volume quickly in the new loan, the Debt Office is offering exchanges of a total of SEK 24 billion during a four-day period after the first auction in the new loan. The exchanges into loan 1049 will be carried out nominal against nominal.
The exchanges into loan 1049 will occur during the period September 2 -September 7 from loan 1041 (6.75%, May 2014) according to the following timetable:
|
Exchanges into loan 1049 |
Debt Office will buy |
Debt Office will sell | ||
|
|
Amount (SEK
million) |
Loan |
Amount (SEK million) |
Loan |
|
Thursday, September 2 |
6,000 |
1041 |
6,000 |
1049 |
|
Friday, September 3 |
6,000 |
1041 |
6,000 |
1049 |
|
Monday, September 6 |
6,000 |
1041 |
6,000 |
1049 |
|
Tuesday, September 7 |
6,000 |
1041 |
6,000 |
1049 |
The exchanges will be carried out in auction form. The Debt Office will announce the yield on the repurchase loan at 10.45 a.m. (Reuters page PMRE) on each respective exchange day. The authorised dealers place bids as in a normal auction. Auction bids will be accepted until 11.00 a.m. and results will be announced at 11.10 a.m. The Debt Office will base its pricing on prevailing market yields and will take into account historical and theoretical pricing patterns.
The Debt Office will provide an extra repo facility for loan 1049 starting on September 1 with the earliest settlement date on September 6, the settlement date of the first auction. The extra repo facility will comprise SEK 20 billion minus the auctioned volume. The repos will be priced at 15 basis points below the repo rate of the Riksbank, Sweden's central bank.
For additional information, please contact:
Magnus Andersson, tel. +46 8-613 47 29
Eric Morell, tel. +46 8-613 47 71
Eric Morell, tel. +46 8-613 47 71
