Swedbank announces intention to reduce outstanding subordinated debt

Swedbank has, over the course of the last year received offers from investors to buy back some of its outstanding subordinated debt instruments. As a service to its debt investors, and as a part of managing its capital base, Swedbank has applied for, and been granted, approval from the SFSA to buy back up to SEK 3bn of certain of its Tier 2 debt instruments (please see full list of issues affected by this statement below). The current approval from the SFSA is valid through October 2009. The buy backs will be handled by Swedbank Markets, which will publish weekly updates on Bloomberg of the remaining outstanding amount under each issue. Furthermore, it is Swedbank's current intention to call its outstanding subordinated debt instruments which are subject to issuer call during 2010, including the USD 300m “Tier 1 bond” (Non-cumulative Perpetual Step-up Capital Securities) which may be called by the issuer in March 2010. The final decision will be made prior to the call expiration date, and will be subject to SFSA approval. Swedbank has at this point no intention of launching tender offers in the market for any of its outstanding subordinated debt. It is Swedbank’s view that the continued ability to support the bank's balance sheet should be secured by its core Tier 1 capital. Over the last year, Swedbank has increased its core Tier 1 ratio by 1.3%, to 9.8% in June 2009. Furthermore, Swedbank's recently announced rights issue would, on a pro-forma basis, take its core Tier 1 to 12 .1 %. Swedbank does not at this point plan to issue any new subordinated debt instruments. For further information please contact: Jonas Erikson, Head of Group Treasury, Swedbank, phone: +46 8 5859 0889 Thomas Backteman, Head of Corporate Communications, Swedbank, phone:+46 708 311 166 For information regarding the buy back process please contact: Andreas Torp, Swedbank Markets DCM, phone: +46 8 700 9953 Martin Rydin, Swedbank Group Treasury, phone: +46 8 5859 3527 The issues affected by this statement: ISIN Currency Notional amount XS0069782406 JPY 10 000 000 000 XS0216216845 USD 300 000 000 XS0257529296 GBP 250 000 000 XS0269222591 USD 75 000 000 XS0276165346 EUR 150 000 000 SE0000226466 SEK 1 258 770 000 SE0001659665 SEK 1 935 000 000 SE0001800905 SEK 250 000 000 SE0001800913 SEK 2 100 000 000 SE0001877739 SEK 1 100 000 000