SEB releases SEK 8.3 billion in housing loans through securitization

SEB releases SEK 8.3 billion in housing loans through securitization SEB releases capital and utilizes its capital base for effectively SEB is proceeding with the securitization of housing loans amounting to SEK 8.3 billion, or EUR 1 billion, through the sale of part of its housing mortgage loans to Osprey Mortgage Securities Limited. This is being effected through the issue of EUR 1 billion in bonds with the housing loans as collateral. The purpose is to extract the loans from the balance sheet and, consequently, be able to more effectively utilize the SEB Group's capital base to achieve flexibility in the balance sheet for future investments. SEB is a forerunner with regard to securitization and has carried out several such transactions previously. Securitization is becoming increasingly more common on the international market. The securitization process means that SEB Bolån AB sells part of its housing mortgage loans to the Osprey Company. In conjunction with this transaction, Osprey issues bonds with the loans as collateral. "SEB utilizes its capital base more effectively and facilitates continued expansion in the growth sectors e-banking and savings while SEB continues to uphold its traditional banking transactions," says Zaid Pedersen, Deputy CFO, SEB The bonds are being placed on the Euro market through SEB Debt Capital Markets and Goldman Sachs International. The bonds have been given the highest rating by the Fitch IBCA, Moody's and Standard & Poor's rating institutes. SEB Bolån AB holds a market share of about 11 percent of the Swedish housing loan market, has 290,000 customers and approximately 300,000 housing loans totaling about SEK 115 billion. For further information, contact Zaid Pedersen, Deputy CFO, SEB. +46 8 763 92 90 Staffan Olsson, President, SEB Bolån AB. +46 763 89 04 Boo Ehlin, Press Manager, SEB. +46 763 85 77, 70 763 85 77 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/06/16/20000616BIT00260/bit0001.doc http://www.bit.se/bitonline/2000/06/16/20000616BIT00260/bit0002.pdf