Riksgälden; Swedish National Debt Office To Use Nasdaq OMX Cleared Bond Forwards

The Swedish National Debt Office will from now on be able to sell covered mortgage bonds in forward contracts cleared by Nasdaq OMX. This will increase our flexibility in managing our surpluses that are placed in for example covered bonds.

With the new technique we can buy covered bonds and at the same time sell them forward. This gives us a complement to reversed repos in covered bonds when investing the surplus from extra T-bill auctions.

The next extra auction is scheduled to 15 December 2008 with a preliminary auction volume of SEK 20 billion.

Normally, we would invest the cash primarily in reversed covered bonds repos. Reversed repos in covered bonds, or Buy/Sellbacks, are agreements to purchase a bond and at the same time sell it at a later date. In principal, this means that we sell the bonds with forward contracts with the same counterparts as in the purchases.

From now on, we will also be able to do the same but with a somewhat new technique. We will buy covered bonds and at the same time sell Bond Forwards in covered bonds that are cleared through Nasdaq OMX. Nasdaq OMX will thereby be the central clearing party against which we have counterpart exposure.

Using this method from our side may facilitate the rollovers of the forward contracts in covered bonds maturing in December. In addition, the Debt Office obtains a more flexible tool to manage surpluses.

For more information, please contact: Thomas Olofsson, Head of Debt Management Department, +46 8 613 47 82 Maria Norström, Deputy Head of Funding, +46 8 613 46 35

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

Riksgälden

http://www.rgk.se/

Stock Identifier: SSE.RIKS

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