Sweden raises SEK 10 billion at 1.386 % with 50-year bond

Stockholm, SWEDEN


Sweden raises SEK 10 billion at 1.386 % with 50-year bond

The Kingdom of Sweden raised SEK 10 billion at a yield of 1.386 per cent in the planned sale of a 50-year government bond. The new bond will be the longest outstanding loan in Sweden’s central government debt.

More than 80 investors participated in the syndicated sale with the total bid volume reaching above SEK 52 billion. Syndication means that a group of banks executes the transaction at terms approved by the issuer. The final pricing was fixed at 45 basis points above the yield on the Swedish government bond that was formerly the longest, maturing in just over 24 years.

– I am pleased that we were able to extend the Swedish government bond curve to 50 years through this transaction. With Sweden’s strong state finances as a foundation, we have again shown that we can attract a broad investor base, says Johan Bergström, Acting Head of Funding at the Swedish National Debt Office.

The Debt Office will gradually build up the outstanding stock of the new bond SGB 1064 by issuing smaller volumes in regular auctions.

Terms and conditions

IssuerKingdom of Sweden
SizeSEK 10 billion
Coupon1.375 %
Maturity date23 June 2071
Price99.605 %
Yield1.386 %
Yield of SGB 1064 versus yield of SGB 1063 maturing on 24 November 204545 basis points
Lead managersBarclays, Danske Markets, Handelsbanken Markets, Natwest Markets, Nordea Markets, SEB, Swedbank

Distribution by investor type

Fund managers29 %
Insurance and pension companies27 %
Hedge funds18 %
Central banks/ public institutions17 %
Banks9 %

Distribution by region

Sweden39 %
UK20 %
Other Nordics15 %
Asia & Middle east14 %
Rest of Europe12 %

Contact

Johan Bergström, Acting Head of Funding, +46 8 613 45 68
Press office, press@riksgalden.se, +46 8 613 47 01