Länsförsäkringar Hypotek submits application for covered bonds

On September 27, Länsförsäkringar Hypotek AB submitted an application to Finansinspektionen (Swedish Financial Supervisory Authority) for a license to issue covered bonds, in accordance with The Covered Bonds (Issuance) Act (2003:1223).

Conditional upon the company receiving the license from the Swedish Financial Supervisory Authority, the issuance of covered bonds will commence at the end of the second quarter 2007, at the earliest, or during the third quarter 2007. Thereafter, the Company’s long term funding will consist of covered bonds. The goal is to achieve a triple-A ratings for the secured borrowing. “Today, we are taking an important step toward creating improved conditions for competitive borrowing. It strengthens our market position and ensures that also in the future we can offer our customers attractive rates on mortgage loans. When we have achieved our ratings goal, we will be able to offer interesting investment alternatives to a broader investor base,” says Anders Borgcrantz, President of Länsförsäkringar Hypotek. Länsförsäkringar Hypotek will offer holders of bonds and notes that were issued through Länsförsäkringar Bank’s domestic MTN program and EMTN program, as well as bonds issued through the basic prospectus for the continuous issuance of bonds, the opportunity to exchange their holdings for corresponding bonds and notes in Länsförsäkringar Hypotek. The exchange offer does not include securities issued under Länsförsäkringar Banks’ commercial paper programs. The company will provide more information at a later date specifying when the exchange will occur. Länsförsäkringar Hypotek will establish a benchmark program for the continuous issuance of covered bonds, a domestic MTN program and an EMTN program. Länsförsäkringar Hypotek will use corresponding issue method for the covered bonds that applies for other large mortgage institutions in the Swedish market. For further information, contact: Anders Borgcrantz 08-588 412 51 President, Länsförsäkringar Hypotek AB 073-96 412 51 Dag Rosander 08-588 414 99 Press Officer, Länsförsäkringar AB 073-96 414 99