Swedbank's early redemption and buyback of subordinated loans

Press Release 22 July 2010

Swedbank's early redemption and buyback of subordinated loans

Swedbank has received approval by Finansinspektionen (SFSA) to buy back issued,
subordinated Tier 2 loans amounting to SEK 9bn. The buyback is a part of
Swedbank's active work to manage the bank's capital structure. The SFSA's
approval is valid until 31 October 2010. 

The buybacks will be made for subordinated loans where Swedbank has the right to
exercise early redemption during 2011 and 2012. The total outstanding volume of
such loans amounts to approximately SEK 19bn Furthermore, SFSA has granted
approval for Swedbank to redeem outstanding Tier 2 loans amounting to EUR 105m
(ISIN XS0233762375) at the time of the bank's right to exercise early redemption
on 28 October 2010.

Swedbank does not at this point plan to issue any new subordinated loans to
replace the loans bought back or redeemed early. The bank's focus as regards
securing stability in its balance sheet is on its Core Tier 1 capital, as
previously communicated. Since mid-2008 Swedbank has increased its Core Tier 1
ratio by 5.2 percentage units to 12.7% in June 2010.

The buybacks will be handled by Swedbank Markets and Bank of America Merrill
Lynch. Weekly updates will be published on Bloomberg of the remaining
outstanding amount for each loan. The maximum volume to be bought back is SEK
9bn in compliance with SFSA's approval, but the actual volume bought back could
amount to less depending on the market's willingness to sell the above mentioned
loans. Swedbank currently does not intend to launch tender offers in the market
for any of its outstanding subordinated loans.

Please find attached the pdf document with the full list of issues which are
included.


For further information please contact:
Jonas Erikson, Head of Group Treasury, Swedbank, tel: +46 8 585 908 89
Thomas Backteman, Head of Corporate Affairs, Swedbank, tel: +46 708 311 166

For information regarding the buyback process please contact: 
Ted Karlsson, Swedbank Markets DCM, tel: +46 8 700 99 87
John Cavanagh / Tommaso Gros-Pietro, Bank of America Merrill Lynch, tel: +44 20
7995 3715