The Kingdom of Sweden's two-year euro bond to the Riksbank record cheap for the state
(Thomson Reuters ONE) -
The Kingdom of Sweden issues 1 billion euro (approximately SEK 9 billion) in a
new two-year benchmark bond. The loan is part of the refinancing of the on-
lending in foreign currency to the Riksbank. The loan is the cheapest ever
syndicated in the euro market.
The deal was oversubscribed just over three times. The significant demand can be
explained by a very strong interest for safe haven assets and the lack of
alternatives with two years' maturity.
- It is very pleasing to experience an historic record by, according to many of
our business counterparties, for an issuer the absolutely cheapest syndicated
deal ever since the introduction of the euro. The large appetite enabled us to
tighten the price at execution and still achieve a broad investor base, says
Maria Norström, Head of Funding.
During 2011, three of the bonds on-lent to the Riksbank fall due. As part of the
refunding of the third bond maturing on 8 September, the Kingdom of Sweden
issued a euro bond in the international capital market. The remaining
refinancing requirement will be met by the new government bond 1055. For further
information see the press release from 23 August.
Central banks bought 49 per cent of the issue. Banks, corporates and fund
managers bought around 14 per cent each. The balance was sold to pension- and
insurance companies. Geographically, just over 30 per cent of the bond was sold
to Nordic investors. The remainder went to Eastern Europe, Continental Europe,
Asia and the Middle East.
Comments from the lead managers: Swedish public finances are among the strongest
in Europe and the credit risk is priced among the lowest in the world. The level
achieved by Sweden is extremely tight, especially in the context of a syndicated
transaction and highlights the exceptional standing of Sweden among the
international investor community. The record deep sub-Euribor pricing also
reflects Sweden's very limited foreign currency funding going forward.
Terms and conditions
Issuer Kingdom of Sweden
Size EUR 1 billion
Coupon 0.875 % p.a.
Maturity 2 September, 2013
Price 99.897 %
Yield 0.927 % p.a.
Spread versus Euro mid swaps minus 55 basis points
Lead managers Danske Bank, Goldman Sachs International and Nordea
Markets
For more information, please contact:
Maria Norström, Head of Funding, +46 8 613 46 35
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Riksgälden via Thomson Reuters ONE
[HUG#1540867]
Unternehmensinformation / Kurzprofil:
Datum: 24.08.2011 - 12:53 Uhr
Sprache: Deutsch
News-ID 58835
Anzahl Zeichen: 3433
contact information:
Town:
Stockholm
Kategorie:
Business News
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