SOURCE: Svensk Exportkredit AB (SEK)

January 31, 2007 07:44 ET

SEK Financial Accounts Year 2006

STOCKHOLM, SWEDEN -- (MARKET WIRE) -- January 31, 2007 --

SEK breaks new volume record

In a market still characterized by high liquidity and reduced margins, the Swedish Export Credit Corporation (SEK) continued to break new volume records in 2006. New customer financial transactions reached 63.9 billion Swedish kronor (Skr), up Skr 20 billion compared to the previous record year 2005. Profits before taxes reached Skr 543.2 million, compared to Skr 498.1 million in 2005.

- We can look back at a very successful year for SEK, where I am especially pleased by the increase in our credit volume, says Peter Yngwe, SEK President.

Export credits and credits to corporates constituted the major part of SEK's new lending at Skr 27.7 billion. New lending to the public sector amounted to Skr 15.8 billion, while new credits to financial institutions totaled Skr 13.4 billion.

Especially noteworthy in 2006:

* The export credit is SEK's fastest growing business segment, reflecting the success of Swedish exports in 2006. SEK's largest credit was a credit agreement with the State of Pakistan, financing the Pakistani government's purchase of an air-borne supervision system from SAAB. SEK has also financed Ericsson's export of telecom equipment to, for instance, Tunisia, Kazakhstan and Russia.

* SEK's lending to infrastructure projects in the Swedish municipalities continued at a high level. Customers included municipalities such as Södertälje, Helsingborg, Borås and Sandviken. Credits to the public sector primarily finance environment and energy investments.

* SEK continued its efforts to provide credits to small and medium-sized enterprises (SMEs). Among other things, SEK entered into a cooperation agreement with Sparbanken Finn and Sparbanken Gripen to facilitate these banks lending to SMEs. SEK is also growing its advisory services in this customer segment.

- During an economic boom, the supply of financing is abundant and competition continuous to increase. SEK meets this primarily in two ways: through continued innovation and increased efficiency. SEK's strength comes, among other things, from our ability to continuously develop new capital markets products, where lending in local currencies is an important product for our export companies, says Peter Yngwe.

Year-end report appended.

For further information, please contact Peter Yngwe, President, +46 8 613 83 00, or Lars M Andersson, Information Director, +46 8 613 84 05

SEK's mission is to secure access to financial solutions for export and infrastructure. SEK offers a wide spectrum of financial solutions, ranging from standardized loans to innovative and complex financial products. SEK's operations are based on commercial interests. SEK's main source of financing is the issuing of bonds on the international capital markets. SEK's rating from Standard & Poor's and Moody's are AA+/Aa1 respectively for long-term debt. For more information, visit

Financial Accounts Year 2006

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