SEK Interim Report 3 2015: Brazil deal signed in third quarter – SEK’s largest ever transaction

In the third quarter, SEK signed a financing agreement for Saab’s sale of the
Gripen fighter plane to Brazil. This is SEK’s largest ever lending transaction,
totaling the equivalent of Skr 41.9 billion. SEK is financing the entire
transaction and EKN is insuring the loan repayments. Payments will be made
gradually over a period of several years.
“The Brazil Deal is a testament to the strength of Swedish industry and the
Swedish export credit system. It is positive that the deal contributes to new
jobs in Sweden. I am proud that we have been able to be a part of this
transaction”, said SEK’s CEO Catrin Fransson.

Total new lending, including agreed but undisbursed loans, after the first nine
months of 2015 was consequently much higher than after the same period in 2014,
at Skr 83.0 billion compared with Skr 42.8 billion.

Financial market conditions have deteriorated in the summer and in early autumn,
with significant stock market declines, large flows of capital from the emerging
markets and uncertainty regarding US Federal Reserve’s possible interest rate
increases. This has led to increased volatility, resulting in greater
uncertainty and wider credit spreads.

“In the third quarter, many Swedish exporters turned to SEK for financing. We
have also continued to develop our offering to medium-sized companies,” said
SEK’s CEO Catrin Fransson.

Results for the first nine months of the year were stable and we have good
capitalization. The Common Equity Tier-1 capital ratio was 20.8 percent at the
end of the period (16.9 percent at year-end 2014) and we also have healthy
liquidity capacity for new lending, even in difficult market conditions.

Results, January–September 2015

  · New lending was Skr 83.0 billion (9M14: Skr 42.8 billion)
  · Net interest revenues were Skr 1,234 million (9M14: Skr 1,127 million)
  · Operating profit was Skr 1,193 million (9M14: Skr 1,126 million)
  · Net profit was Skr 927 million (9M14: Skr 874 million)
  · The return on equity was 7.5 percent (9M14: 7.5 percent)
  · The outstanding volume of offers for credits at the end of the period was
Skr 64.3 billion (Skr 78.4 billion at year-end 2014)
  · The Common Equity Tier-1 capital ratio was 20.8 percent at the end of the
period (16.9 percent at year-end 2014)

Find out more at www.sek.se and in the attached report.

Contact: Edvard Unsgaard

Chief Communications Officer, + 46-8-613 84 88
About SEK

SEK’s mission is to ensure access to financial solutions for the Swedish export
industry on commercial and sustainable terms. SEK has a complementary role in
the market, which means we act as a complement to bank and capital market
financing for exporters wanting a range of financing sources. SEK’s vision is to
strengthen the competitiveness of Swedish exporters, which helps create
employment and sustainable growth in Sweden.