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