SOURCE: Svensk Exportkredit AB (SEK)

August 31, 2007 06:01 ET

SEK: Interim report, first six months of 2007

STOCKHOLM, SWEDEN--(Marketwire - August 31, 2007) -

SEK stands strong

Thanks to high business volumes in a market otherwise characterized by high liquidity and pressures on margins, AB Svensk Exportkredit achieved improved earnings for the first half of the year. Core earnings amounted to Skr 284.6 million, compared to Skr 267.4 million during the same period of the previous year. Borrowing during the first six months was very successful, amounting to Skr 71.8 billion. This is more than borrowing for the previous year as a whole. SEK has high liquidity in order to provide credit to the Swedish export industry - a liquidity that is particularly important at a time when it can be difficult to borrow money.

* Core earnings for the first six months amounted to Skr 284.6 (267.4)

* Operating profit (IFRS) totalled Skr 292.6 million (249)

* The volume of new customer financial transactions was Skr 27.2 billion (36.2)

* A new financing alternative intended for small and medium- sized companies - the Export Loan - is established

* Company lending remained strong

* Successful borrowing, new bond platform and high liquidity

SEK improved it core earnings for the first six months by Skr 17.2 million to Skr 284.6. New customer financial transactions for the first six months totalled Skr 27.2 billion, of which approximately 50 percent comprised loans to companies. The lending volume for Q2 was Skr 13.7 billion.

"It is extremely satisfying that we achieved such strong earnings despite reduced margins on our lending. The Swedish companies remain very active in the global export market. Facilitating their work is an important and natural aspect of our operations. In addition, for small and medium-sized companies we created the Export Loan, which we hope will help hone their competitive edge," says Peter Yngwe, MD of AB Svensk Exportkredit.

SEK's borrowing during the first six months was very successful. Borrowing totalled Skr 71.8 billion, which is 10.5 billion more than borrowing during the previous year as a whole. This period also saw the largest individual borrowing in SEK's history - a three-year bond loan in the amount of 1 billion Euros. In addition, SEK issued a number of large bond loans, including a two-year bond for 1 billion US Dollars. SEK has also entered into an agreement as first emitter to participate in a new platform - ELEMENTS - for bond trade on the stock exchange in the USA. SEK will be partnering with Distributors, Index Providers and US Securities Exchanges to offer index linked notes across asset classes. Investors will be able to buy and sell the notes through Financial Advisors on U.S. securities exchanges.

The finance market of many countries was characterized by unrest and turbulence in August. The uncertainty also affected the credit risk market, resulting in greatly reduced liquidity that made it more difficult for banks and other borrowers to borrow money. SEK has high liquidity and has now further enhanced its liquidity in preparation for a possible increased need from the Swedish export industry. The liquidity is primarily placed in high-qualitative assets with very high rating. A small portion of these undergo market valuation. SEK has no direct exposure to the uncertain American subprime market.

For more information, contact Peter Yngwe, MD, 08-613 83 00 or Johan Winlund, Information Director, 08-613 84 88

The full report including tables can be downloaded from the enclosed link:

Interim Report January - June 2007:

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