SOURCE: AB Svensk Exportkredit

November 30, 2007 05:22 ET

SEK Stable Partner in Turbulent Market

STOCKHOLM, SWEDEN--(Marketwire - November 30, 2007) -


During the recent turbulence in the world's credit markets SEK has been able to strengthen its position by continuing to be a stable partner for the Swedish export industry. Core earnings for the first nine months were Skr 396.0 million, compared with Skr 409.2 million the same period last year. Despite the turmoil in the credit markets, borrowing has continued to be very successful, reaching Skr 85.1 billion, which was Skr23.8 billion more than aggregate borrowing for the full year 2006.

* Core earnings for the first nine months were Skr 396.0 million (409.2)

* Operating profit (IFRS) totaled Skr 371.8 million (381.6)

* Volume of new customer financial transactions was Skr 37.8 billion (50.8)

* Successful borrowing of Skr 85.1 billion (46,1)

* Stable lending despite turbulent market

SEK's core earnings amounted to Skr 396.0 million for the first nine months of 2007, compared with Skr 409.2 million for the same period the previous year. New customer financial solutions accepted by borrowers totaled Skr 37.8 billion, which was in line with expectations. Corporate credits, including export credits, amounted to Skr 21.6 billion. The amount of outstanding offers rose sharply and amounted to Skr 48.3 billion at period-end, compared with Skr 25.9 billion at the same period-end last year.

The credit markets during the third quarter were markedly affected by the worries and turbulence that first arose in the US subprime mortgage market. SEK has strengthened its position in the market during the liquidity crisis that the turmoil triggered, enabling SEK to remain a stable partner for Sweden's export industry.

"The recent turmoil in the global market has clearly shown how important SEK is for the Swedish export market and Swedish industry. We are and will continue to be a natural and reliable partner that our customers can always rely on, regardless of market conditions," says Peter Yngwe, President of SEK.

Despite the high quality of SEK's assets, current conditions have had a negative impact on the valuation of SEK's trading portfolio. The trading portfolio, amounting to Skr 15.3 billion, consists mainly of bonds issued by banks with high ratings and major Swedish companies.

SEK's borrowing continued to be highly successful, totaling Skr 85.1 billion for the nine-month period, which was Skr 23.8 billion more than aggregate borrowing for the full year 2006. During the third quarter SEK executed a global three-year bond amounting to USD 1.25 billion. The highly successful execution was quickly oversubscribed by investors from all over the world. At that time SEK, was the first issuer, not being a supranational institution or directly guaranteed by an individual state, to successfully execute a global bond since the beginning of the liquidity crisis. The bond was initially planned for USD 1 billion, but due to strong interest from investors SEK increased the volume by USD 250 million. The bond was sold to investors in Europe, Asia, the US, the Middle East and Africa.

For further information, please contact:

Peter Yngwe, President, +46 (0)8-613 83 00, or Johan Winlund, Head of Communications, +46 (0)8-613 88 05

The mission of the Swedish Export Credit Corporation (SEK) is to secure access to financial solutions for export and infrastructure. SEK offers a broad range of financial solutions, from standardized loans to innovative and complex financing products. SEK's activities are founded on a commercial basis and it mainly finances its activities by issuing bond loans on international capital markets. SEK's long-term debt rating is AA+ from Standard & Poor's and Aa1 from Moody's. For more information please visit the SEK website: www.sek.se

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

Interim Report Jan - Sep 2007: http://hugin.info/138134/R/1172091/231588.pdf


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