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

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

Issuer	Kingdom of Sweden
Size	SEK 10 billion
Coupon	1.375 %
Maturity date	23 June 2071
Price	99.605 %
Yield	1.386 %
Yield of SGB 1064 versus yield of SGB 1063 maturing on 24 November 2045	45 basis points
Lead managers	Barclays, Danske Markets, Handelsbanken Markets, Natwest Markets, Nordea Markets, SEB, Swedbank

Distribution by investor type

Fund managers	29 %
Insurance and pension companies	27 %
Hedge funds	18 %
Central banks/ public institutions	17 %
Banks	9 %

Distribution by region

Sweden	39 %
UK	20 %
Other Nordics	15 %
Asia & Middle east	14 %
Rest of Europe	12 %

Contact

Johan Bergström, Acting Head of Funding, [phone]
Press office, [e-mail], [phone]