SEK Interim Report 3 2015: Brazil deal signed in third quarter – SEK’s largest ever transaction

In the third quarter, SEK signed a financing agreement for Saab’s sale of the Gripen fighter plane to Brazil. This is SEK’s largest ever lending transaction, totaling the equivalent of Skr 41.9 billion. SEK is financing the entire transaction and EKN is insuring the loan repayments. Payments will be made gradually over a period of several years.

“The Brazil Deal is a testament to the strength of Swedish industry and the Swedish export credit system. It is positive that the deal contributes to new jobs in Sweden. I am proud that we have been able to be a part of this transaction”, said SEK’s CEO Catrin Fransson.

Total new lending, including agreed but undisbursed loans, after the first nine months of 2015 was consequently much higher than after the same period in 2014, at Skr 83.0 billion compared with Skr 42.8 billion.

Financial market conditions have deteriorated in the summer and in early autumn, with significant stock market declines, large flows of capital from the emerging markets and uncertainty regarding US Federal Reserve’s possible interest rate increases. This has led to increased volatility, resulting in greater uncertainty and wider credit spreads.

“In the third quarter, many Swedish exporters turned to SEK for financing. We have also continued to develop our offering to medium-sized companies,” said SEK’s CEO Catrin Fransson.

Results for the first nine months of the year were stable and we have good capitalization. The Common Equity Tier-1 capital ratio was 20.8 percent at the end of the period (16.9 percent at year-end 2014) and we also have healthy liquidity capacity for new lending, even in difficult market conditions.

Results, January–September 2015

• New lending was Skr 83.0 billion (9M14: Skr 42.8 billion)
• Net interest revenues were Skr 1,234 million (9M14: Skr 1,127 million)
• Operating profit was Skr 1,193 million (9M14: Skr 1,126 million)
• Net profit was Skr 927 million (9M14: Skr 874 million)
• The return on equity was 7.5 percent (9M14: 7.5 percent)
• The outstanding volume of offers for credits at the end of the period was Skr 64.3 billion (Skr 78.4 billion at year-end 2014)
• The Common Equity Tier-1 capital ratio was 20.8 percent at the end of the period (16.9 percent at year-end 2014)

Find out more at www.sek.se and in the attached report.

Contact: Edvard Unsgaard

Chief Communications Officer, + 46-8-613 84 88

About SEK

SEK’s mission is to ensure access to financial solutions for the Swedish export industry on commercial and sustainable terms. SEK has a complementary role in the market, which means we act as a complement to bank and capital market financing for exporters wanting a range of financing sources. SEK’s vision is to strengthen the competitiveness of Swedish exporters, which helps create employment and sustainable growth in Sweden.