For the second time this year, the Kingdom of Sweden tapped the euro market in euros. The order book was subscribed 2.7 times. The strong demand is explained by the absence of syndicated sovereign supply in the two-year maturity and the huge amount of liquidity to be invested in the sector.
The foreign-currency borrowing requirement for 2009 totals SEK 152 billion and includes SEK 107 billion of on-lending. To this date, roughly SEK 120 billion has been raised in bonds and SEK 25 billion in commercial paper.
- We were very pleased to see the order book grow so quickly, giving us the possibility to tighten the price and yet achieve a very broad international distribution, says Maria Norström, Deputy Head of Funding at the Swedish National Debt Office.
Terms and conditions
|
Issuer |
Kingdom of Sweden |
|
Size |
EUR 3 billion |
|
Coupon |
1.50 % |
|
Maturity |
8 September, 2011 |
|
Price |
99.775 |
|
Yield |
1.615 |
|
Spread versus Euro mid swaps |
minus 15 basis points |
|
Lead managers |
Barclays Capital, Citi and UBS |
|
Co-leads |
Calyon, Danske Bank, Nordea Markets, RBC and RBS |
About 42 per cent of the bond was placed with banks, 28 per cent with central banks, 15 per cent with fund managers, 9 per cent with corporates and 6 per cent with retail/private banks. Almost 60 per cent was distributed to European (excluding Swedish) accounts, 23 per cent to Swedish and the balance to Asia, the Middle East and the Americas.
Comments from the lead managers: "A liquid current coupon two-year security from the Kingdom of Sweden is a perfect instrument for investors in the current market conditions. This transaction builds on the success of Sweden's return to the euro market and complements its euro denominated yield curve".
For more information, please contact:
Maria Norström, Deputy Head of Funding, +46 8 613 46 35