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Year 2005 was successful for Swedish exports, resulting in high volume of new export credits. SEK's financing of infrastructure investments by municipalities increased, as did credits granted to the financial sector. The corporate market was characterized by high liquidity, with consequential strong pressure on prices in the credit area.
In total, SEK's new lending rose by 65% to Skr 37.5 billion in 2005, compared with Skr 22.7 billion in 2004. The operating profit in 2005 totaled Skr 498.1 million, compared with Skr 611.8 million in 2004, which included a recovered credit loss.
"We have managed a tough market successfully and the increased credit volumes demonstrates SEK's capacity and provides a solid platform for the future," says Peter Yngwe, President of SEK.
SEK's credit volumes rose despite the generally favorable liquidity situation of Swedish companies. Among other assignments, SEK, by devising customized lending transactions, assisted the efforts of two Swedish groups of companies to cost effectively resolve their financing requirements in Mexican pesos. Notable among SEK's export credits in 2005 was the financing of exports of Volvo buses to Chile.
SEK's lending to local and regional municipalities remained successful. Lending focuses on infrastructure investments, which are of major importance to the development of Swedish industry. Among other assignments, SEK financed the expansion of the Rya power plant in Gothenburg, whose output is estimated to cover 30% electricity requirements and 24% of heating requirements in the Gothenburg area. Also the lending to the financial sector increased, which to a great extent indirect finances small and medium-sized companies.
During the year SEK acquired an advisory operation. "This acquisition strengthens SEK's ability to provide advisory services, particularly within the treasury area, and thus also to service small and medium-sized companies," says Peter Yngwe.
SEK finances its operations by borrowing in the international capital markets. In 2005, SEK issued two global loans in USD. SEK continued its efforts to borrow in new markets in order to finance its loans to export companies. As one of the first borrowers, SEK in 2005 issued bonds in Turkish lira, Mexican pesos and Icelandic kroner.
Read the year-end report here
For further information, please contact:Peter Yngwe, President, +46-8-613 83 00, or Lars M Andersson, Information Manager, +46-8-613 84 05