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Derivatives

Swedish Investment Company Enters FX Swap

Investor, the Swedish holding company, has converted a EUR600 million (USD656 million) seven-year bond into a synthetic Swedish krona denominated liability. Pernilla Jeansson, head of treasury in Stockholm, said the company chose to issue the bond in euros since this gave the corporate access to a larger market and longer maturities.

In the swap, Investor pays fixed-rate Swedish krona and receives fixed-rate euros. The coupon of the bond is 4.75%. Jeansson declined to comment on whether the euro rate it receives is the same as the coupon paid or the rate it pays in Swedish krona. The maturity of the swap matches that of the bond. Citigroup and Deutsche Bank were the bookrunners on the bond. Jeansson declined to name the swap counterparties. The bond was issued to refinance debt, noted Jeansson.

Investor is the main investment vehicle for the Wallenberg family and holds stakes in Ericsson, ABB, AstraZeneca and SEB among others.

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