Press Release 17 February, 2011 Swedbank's early redemption and buyback of subordinated debt 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 the Swedish Financial Supervisory Authority (‘SFSA') to buy back issued, subordinated Tier 2 debt securities amounting to SEK 10bn. SFSA's approval is valid until 15 April 2011. The buybacks will be made for subordinated debt where Swedbank has the right to exercise early redemption during 2011 and 2012. The total outstanding volume of such debt amounts to approximately SEK 16bn (a full list of issues included is given below). Furthermore, SFSA has granted approval for Swedbank to redeem outstanding Tier 2 debt securities amounting to SEK 685m (ISIN SE0001659665) at the time of the bank's right to exercise early redemption on 28 February 2011. Swedbank does not at this point plan to issue any new subordinated debt to replace the debt 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 6.4 percentage units to 13.9% in December 2010. The buybacks will be handled by Swedbank Markets and Bank of America Merrill Lynch. The maximum volume to be bought back is SEK 10bn 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 debt securities. Swedbank currently does not intend to launch tender offers in the market for any of its outstanding subordinated debt. For further information please contact: Jonas Erikson, Head of Group Treasury, Swedbank, phone: +46 8 585 908 89 Thomas Backteman, Head of Corporate Affairs, Swedbank, phone: +46 708 311 166 For information regarding the buyback process please contact: Ted Karlsson, Swedbank Markets DCM, phone: +46 8 700 99 87 Rasmus Persson, Bank of America Merrill Lynch, phone: +44 20 7995 6438 The Tier 2 debt securities affected by this statement: ISIN, Currency, Outstanding nominal amount, million XS0069782406 JPY 10,000 W94253AD8 USD 50 XS0080222838 USD 105 XS0257529296 GBP 120 XS0269222591 USD 75 XS0276165346 EUR 136 XS0300645180 USD 400 XS0322614420 EUR 382 NO0010404643 NOK 156 SE0001800905 SEK 89 SE0001800913 SEK 1 890 SE0001877739 SEK 600 SE0002268417 SEK 725 SE0002288381 SEK 374
Swedbank's early redemption and buyback of subordinated debt
| Quelle: Swedbank AB
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