Sweden sells SEK 4 bln of 2029 bonds at average yield 2.413%

Sweden sells SEK 4 bln of 2029 bonds at average yield 2.413%

Sweden's Riksbank recently conducted a bond auction, selling SEK 4 billion (approximately $464 million) of 2029 bonds [1]. The auction, held on August 14, 2020, attracted a significant number of bids, with 7 bids received and 1 accepted. The bonds, which come with a coupon rate of 0.75%, were issued at an average yield of 2.413% [1].

The successful sale of these bonds reflects Sweden's strong position in the international capital market. Despite the ongoing global economic uncertainty, the Swedish economy remains robust, providing the Swedish export industry with the necessary financing [2]. The auction's favorable results can also be attributed to the low-interest-rate environment, which has persisted in recent years [3].

Sweden's Swedish Export Credit Corporation (SEK) plays a crucial role in financing the country's international business activities. SEK borrows funds using various instruments in different geographic markets and targets both institutional and private investors [2]. By issuing green bonds, SEK finances environmentally friendly loans, aligning with the growing trend of socially responsible investing [2].

The Swedish National Debt Office's successful bond auction is a testament to Sweden's stable economy and favorable market conditions. With a diversified borrowing portfolio and high liquidity, SEK is well-positioned to navigate any potential challenges in the global capital markets [2].

References:
[1] Globenewswire. (2020, August 14). Result of Riksbank reversed auctions - SEK bonds. https://www.globenewswire.com/news-release/2020/08/14/2078433/0/en/Result-of-Riksbank-reversed-auctions-SEK-bonds.html
[2] Swedish Export Credit Corporation. (n.d.). For investors. https://www.sek.se/en/for-investors/
[3] LSE. (2020, August 19). Sweden sells SEK2b of 2020 bonds at average yield of 2.529%. https://www.lse.co.uk/news/sweden-sells-sek2b-of-2020-bonds-at-average-yield-of-2.529/