The transaction, due 1st November 2030 pays a semi-annual coupon of 5.40% and was priced at a spread of SQ ASW+75bps (ACGB+91.5bps) with a reoffer yield of 5.43%. Joint Lead Managers on the transaction were Nomura, RBC Capital Markets, and TD Securities.

Execution highlights

• SEK issued an initial marketing announcement at 10:04am Sydney time on Friday the 20^th of October, to mark their intention to come to the AUD market subject to market conditions.
• A new 7-year benchmark was swiftly launched at 15:00 Sydney time on Monday 23^rd October, and orderbooks were simultaneously opened with a spread of SQ ASW+75bp.
• At 13:30 Sydney time on Tuesday the 24^th of October 2023, the orderbook had grown to surpass AUD 570m incl. AUD 60m JLM. The spread was set at SQ ASW+75bp and the deal size was set at AUD 500m. The orderbook closed shortly thereafter at 14:00 Sydney time.
• The deal was priced at 3:54pm Sydney time with a spread of SQ ASW + 75bps / ACGB 1% Dec 2030 + 91.5bps / EFP + 73bps, re-offer price of 99.827, a reoffer yield of 5.43%, and paying a semi-annual coupon of 5.40%.
• This transaction represents the largest bullet 7-year AUD transaction in recent years and reflects SEK’s strategic and trusted approach in engaging with investors.

Summary of distribution

• The final orderbook closed over AUD 570m including AUD 60m JLM interest, with participation from more than 20 investors.
• By investor type, the largest share went to Central Banks at 52.3%, followed by Banks, Bank Treasuries 18.5%, Fund Managers, Asset Managers at 15.2% and finally other accounts at 14%.
• By geography, 69.8% went to APAC excluding Australia accounts, followed by 16.6% to EMEA and 13.2% to domestic Australian investors while 0.4% went to Americas.

Quotes

“An excellent result for the Swedish Export Credit Corporation (SEK) overnight, completing another AUD 500m benchmark outing, this time extending their curve to 7Ys, from the previous 5Y outing pre-Summer. The transaction marks the largest SSA 7Y outing this year and solidifies the SEK as a force to be reckoned with in the Kangaroo Market. The success is a testament to the SEK’s tireless work in the Capital Markets and indeed the strong credit strength they provide. Congratulations!” – Mark Yeomans, Debt Capital Markets, Nomura

“Congratulations to the SEK team on another very well-received Kangaroo benchmark! The new A$500m 7-year extends SEK’s outstanding curve, whilst also equalling their joint largest Kangaroo benchmark. Attracting high quality demand in excess of A$570m is a reflection of the team’s efforts on global investor engagement. RBC is delighted to have worked with SEK on this deal which re-affirms their commitment to the Kangaroo SSA market.” Harald Eikeland, Head of APAC syndicate, RBC Capital Markets

“We congratulate SEK on an exceptional AUD-denominated 7yr benchmark transaction. A variety of high-quality investors participated having recognized the established presence of SEK in the Australian Dollar market, with this trade marking their second AUD 500m this year. As always, it is our pleasure to work alongside SEK on this transaction” – Paul Eustace, Managing Director, Global Co-Head of SSA and Head of Europe and Asia Syndicate, TD Securities