Swedbank's early redemption and buyback of subordinated loans

Swedbank's early redemption and buyback of subordinated loans

Swedbank is working actively to manage the bank's capital structure and
as a part of this process has applied for, and been granted, approval by
Finansinspektionen (SFSA) to buy back issued, subordinated Tier 2 loans
amounting to SEK 5bn. SFSA's approval is valid until 31 August 2011.

The buybacks will be made for subordinated loans where Swedbank has the
right to exercise early redemption during 2011 and 2012. Furthermore,
Swedbank will, supported by SFSA's approval, redeem outstanding Tier 2
loans amounting to GBP 97.8m (XS0257529296) at the time of the bank's
right to exercise early redemption on 22 June 2011.

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 7.4 percentage units to 14.9% in
March 2011.

The buybacks will be handled by Swedbank Markets and Bank of America
Merrill Lynch. The maximum volume to be bought back is SEK 5bn 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.

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
Rasmus Persson, Bank of America Merrill Lynch, tel: +44 20 7995 6438

Please find the Tier 2 loans affected by this statement:

ISIN          Currency
W94253AD8     USD
XS0080222838  USD
XS0257529296  GBP
XS0269222591  USD
XS0276165346  EUR
XS0300645180  USD
XS0322614420  EUR
NO0010404643  NOK
SE0001800905  SEK
SE0001800913  SEK
SE0001877739  SEK
SE0002268417  SEK
SE0002288381  SEK