CORRECTING and REPLACING Swedbank to redeem two subordinated bonds

STOCKHOLM, Sweden--(BUSINESS WIRE)--Amendment: A CUSIP number that was missing in the Swedbank release sent out on Feb 08. 2010 at 8.24 GMT has been added to the Hybrid Tier 1 bond.
The corrected first paragraph reads: Swedbank (Pink Sheets:SWDBF) (STO:SWEDA) (LSE:SWK) will redeem two of its outstanding subordinated bonds; the Hybrid Tier 1 subordinated bond (ISIN XS0109209493), CUSIP US87019XAA19, in the amount of USD 300 000 000 and the Lower Tier 2 subordinated bond (ISIN XS0216216845) in the amount of USD 246 550 000. Each redemption will take place on the first available date being March 17, 2010 for the Hybrid Tier 1 bond and April 30, 2010 for the Lower Tier 2 bond.

The corrected release reads:

SWEDBANK TO REDEEM TWO SUBORDINATED BONDS

Regulatory News:

Swedbank (Pink Sheets:SWDBF) (STO:SWEDA) (LSE:SWK) will redeem two of its outstanding subordinated bonds; the Hybrid Tier 1 subordinated bond (ISIN XS0109209493), CUSIP US87019XAA19, in the amount of USD 300 000 000 and the Lower Tier 2 subordinated bond (ISIN XS0216216845) in the amount of USD 246 550 000. Each redemption will take place on the first available date being March 17, 2010 for the Hybrid Tier 1 bond and April 30, 2010 for the Lower Tier 2 bond.

Swedbank has at this point no intention to replace either of these bonds by issuing new subordinated instruments. This statement is in line with Swedbank’s previous announcement regarding its view that the continued ability to support the Bank’s balance sheet should be secured by its core Tier 1 capital.

“The current pricing of subordinated debt relative to other forms of capital, is not in our view reflecting the benefit given by the market, regulators and credit agencies for these instruments. We continuously review the Bank’s capital composition, not least considering the upcoming regulatory changes. However, at this point we do not plan for a new issue of subordinated debt” says Jonas Erikson, Head of Treasury at Swedbank.

Finansinspektionen (SFSA) has given its approval to both redemptions.

Swedbank’s vision is to be the leading financial institution in the markets where we are present. Swedbank has 9.5 million retail customers and 600,000 corporate customers with 389 branches in Sweden, 235 branches in the Baltic countries and another 218 branches in Ukraine. The group is also present in Copenhagen, Helsinki, Kaliningrad, Luxembourg, Moscow, New York, Oslo, Shanghai, S:t Petersburg and Tokyo. As of September 30 2009 the group had total assets of SEK 1,815 billion and approximately 20,000 employees. For more information about Swedbank, please visit www.swedbank.com

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