Kingdom of Sweden raised USD 2 billion (approximately SEK 17 billion) at a yield of 1.224 per cent in a new three-year benchmark. The proceeds will be used to refinance loans to the Riksbank.
The transaction was priced at mid-swaps plus 19 basis points. More than 50 investors took part with the total bid volume exceeding USD 2 billion.
- With the FOMC meeting next week, many issuers took advantage of issuing now. In just a couple of days there has been competing supply of USD 10 billion. Still, the interest for our transaction was significant, says Maria Norström, Head of Funding at the Swedish National Debt Office.
Terms and conditions
| Issuer | Kingdom of Sweden |
| Size | USD 2 billion |
| Coupon | 1.125 % s.a. |
| Maturity date | 15 March 2019 |
| Price | 99.709 % |
| Yield | 1.224 % s.a. |
| Spread versus USD mid swaps | 19 basis points |
| Spread versus US benchmark | 20.9 basis points |
| Lead managers | Goldman Sachs, Nordea, Royal Bank of Scotland |
The Debt Office plans to sell foreign-currency bonds for a total of SEK 60 billion in 2016. After today's transaction, SEK 43 billion of the total remain. All of the planned funding in foreign-currency bonds this year is made to refinance maturing loans to the Riksbank.
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Contact
Johan Bergström, Funding Manager, +46 (0)8 613 45 68