(Adds final terms)
By John Geddie
LONDON, March 21 (IFR) - Triple-A rated Sweden is on track
to add a further USD1bn to its foreign currency holdings, when
it prices a new RegS/144a three-year benchmark on Thursday.
Barclays, Deutsche Bank and HSBC have set final terms on the
deal at mid-swaps minus 6bp area, an aggressive level aimed at
taking advantage of an investor flight to quality with eurozone
markets still shaken from Cyprus' controversial bailout
A straight line interpolation of Sweden's existing bonds
placed fair value on the new March 2016 maturity at around
mid-swaps minus 4bp, according to Tradeweb data at 0920GMT.
One bank managing the deal said the allocation process was
proving tricky, with final orders well in excess of USD1bn from
a number of very high quality accounts.
The deal marks the country's third international bond in
quick succession, after Sweden's debt office was ordered by the
central bank to raise an extra SEK100bn (USD15.4bn) in foreign
currency reserves in 2013.
Non-eurozone country Sweden was last in the public market in
late February when it issued a USD3bn 1% February 2018 bond, the
longest point on its dollar curve.
Barclays, Citi, Credit Suisse and Goldman Sachs priced that
1.0% five-year issue flat to mid-swaps, equivalent to Treasuries
Earlier in January, Sweden also issued a EUR4bn five-year
(Reporting by Josie Cox and John Geddie, editing by Julian