Länsförsäkringar receives permission to issue covered bonds

The Swedish Financial Supervisory Authority (Finansinspektionen) approved on March 23 Länsförsäkringar Hypotek’s application for permission to issue covered bonds in accordance with the Act on issuing covered bonds (2003:1223). Accordingly, the company intends to issue covered bonds not later than during the third quarter of 2007. The goal is to achieve a triple-A ratings for the secured borrowing.

“The Permission from Finansinspektionen is highly satisfying and an important milestone for us. It strengthens our position on the market and ensures that we can also continue to offer customers attractive prices on housing loans in the future. When we achieve the ratings goal, we can offer many investors a highly attractive investment alternative”, says Anders Borgcrantz, President of Länsförsäkringar Hypotek

Holders of bonds issued under Länsförsäkringar Bank’s MTN program and EMTN program and bonds issued under the basic prospectus regarding bonds will be provided the opportunity to exchange their holdings to equivalent bonds in Länsförsäkringar Hypotek. The exchange will be carried out without having to pay any premium.

For further information, contact:

Anders Borgcrantz, +46 8 588 412 51
President, Länsförsäkringar Hypotek AB +46 73 96 412 51

Dag Rosander +46 8 588 414 99
Press Officer, Länsförsäkringar AB +46 73 96 414 99