SBAB

It is strategically important for SBAB to have a well diversified funding portfolio and a broad investor base. This requires an active presence in the capital market and a flexible range of products.

The funding portfolio is well balanced between the Swedish and international capital market, maturities and currencies. SBAB has the following short- and long-term funding programmes.

Short-term funding

SBAB's short-term funding programmes have credit ratings A-1/P-1 by the rating agencies Standard & Poor's and Moody's respectively. SBAB has three established programmes for short-term funding:

• Swedish Commercial Paper Programme (SVPC); SEK 25 bn
• European Commercial Paper Programme (ECP); USD 2 bn
• US Commercial Paper Programme (USCP); USD 4 bn

Long-term funding

SBAB's credit rating for long-term funding is with Standard & Poor's A+ and with Moody's A1. SBAB has one active programme for long-term funding:

• Euro Medium Term Note Programme (EMTN); USD 11 bn

30 March 2010

SBAB has issued a SEK denominated perpetual Tier 1 hybrid instrument of SEK 2bn with an annual fixed coupon of 7.16 % until 8 june, 2015. Thereafter floating interest 3m Stibor + 4.50 %.

The transaction strengthens SBAB's capital adequacy ratio. The Swedish Financial Supervisory Authority (Finansinspektionen) has approved that the capital contribution security will qualify as Tier 1 capital.