Historic issue in the Swedish bond market
On November 24, Länsförsäkringar Bank is launching an historic benchmark bond. Consequently, investors can purchase a new, Swedish high-quality liquid benchmark bond. This is the first time in 20 years that a new player is entering the Swedish market for liquid housing bonds.
“This is an important step on our way to covered bonds. We are choosing to focus on the Swedish market and Swedish investors and will do what is required to maintain high liquidity in the bond,” says Anders Borgcrantz, Executive Vice President of Länsförsäkringar Bank.
The issue is a five-year benchmark loan in which the aim is to reach SEK 5 billion in volume. This bond is the first step toward establishing a complete benchmark program. The bond will be listed on the Stockholm Stock Exchange. The market makers are Swedbank, Danske Consensus/Danske Markets and Nordea.
“Now we are offering a highly attractive investment alternative for the Swedish market. In addition, this strengthens our position in the market and possibility for continued growth. It also ensures that we can continue to offer customers attractive prices on mortgage loans,” says Anders Borgcrantz.
Under the condition that the company receives permission from the Swedish Financial Supervisory Authority (Finansinspektionen), Länsförsäkringar Bank’s subsidiary, Länsförsäkringar Hypotek, will issue covered bonds at the end of the second quarter or during the third quarter of 2007. The goal is to achieve a triple-A rating for the covered borrowing.
Holders of bonds issued under Länsförsäkringar Bank’s MTN program and EMTN program and bonds issued under the program for issuance of benchmark loans will be provided the opportunity to exchange their holdings to equivalent covered bonds in Länsförsäkringar Hypotek. The exchange offer will take place without any premium.
For further information contact:
Anders Borgcrantz, Executive Vice president, Länsförsäkringar Bank AB
+46 8 588 412 51, +46 73 96 412 51
Dag Rosander, Press Officer, Länsförsäkringar AB
+46 8 588 414 99, +46 73 96 414 99