Swedbank gets approval to buy back SEK 9 billion of tier 2 bonds

By Jennifer Chiou

New York, July 22 - Swedbank AB announced that it has received approval from Finansinspektionen for the early redemption and buyback of up to SEK 9 billion total of subordinated tier 2 bonds.

The bank said that it is working to manage its capital structure, adding that it has until Oct. 31 to complete the redemptions.

Affected bonds are listed in the table below and amount to roughly SEK 19 billion in terms of outstanding amount. Holders of the bonds have the right to exercise early redemptions during 2011 and 2012.

Further, Finansinspektionen granted approval for Swedbank to redeem €105 million of its tier 2 bonds with ISIN XS0233762375 on Oct. 28.

Swedbank noted that it does not plan to issue any new subordinated bonds to replace the purchased securities.

Swedbank Markets and Bank of America Merrill Lynch will handle the buybacks.

Questions may be directed to Jonas Erikson (46 8 585 908 89) or Thomas Backteman (46 708 311 166).

The financial services company is based in Stockholm.

Affected tier 2 bonds

ISIN Amount

XS0069782406 ¥10 billion

W94253AD8 $50 million

XS0080222838 $200 million

XS0257529296 £185 million

XS0269222591 $75 million

XS0276165346 €136 million

XS0300645180 $400 million

XS0322614420 €400 million

NO0010404643 NOK 156 million

SE0001659665 SEK 700 million

SE0001800905 SEK 90 million

SE0001800913 SEK 2.092 billion

SE0001877739 SEK 1.1 million

SE0002268417 SEK 790 million

SE0002288381 SEK 384 million

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