Skandinaviska Enskilda Banken AB (publ) issues additional tier 1 convertible notes of SEK 5 billion

Skandinaviska Enskilda Banken AB (publ) (“SEB”) has successfully issued SEK 5bn of additional tier 1 convertible notes.

The issue was well received by the market and the instruments carry a floating interest rate of 3 months Stibor + 280 bps per annum.

The terms of the debt instruments follow customary terms in the Swedish market for additional tier 1 instruments but include a convertible element whereby the instruments, in the event certain capital requirements are not met, will automatically be converted into ordinary shares in SEB. The issue was the first of its kind under Swedish law, with clearing at Euroclear Sweden and listing on Nasdaq Stockholm’s corporate bond list.

SEB is a leading northern European financial services group with a presence in more than 20 countries worldwide and approximately 18,000 employees. As of 30 June 2024, the Group’s total assets amounted to SEK 4,152 billion while assets under management totalled SEK 2,666 billion.

Mannheimer Swartling advised SEB on the transaction.