Debt investors

Lending
Swedbank Mortgage is a Swedish mortgage institution with a leading position in the Swedish market. The business of Swedbank Mortgage is long-term mortgage financing, and its customers number over one million. This means that the company finances more than one third of all the houses in Sweden.

Swedbank Mortgage is a fully-owned subsidiary of Swedbank. The products are mainly sold through the branch network of Swedbank and the savings banks. This gives the company access to Sweden's largest bank-owned distribution network with its 742 branches. There is no lending outside of Sweden.

Swedbank Mortgage’s lending for single-family housing is generally limited to 75 percent of the property’s estimated market value. Loans are secured by first ranking Pantbrev on residences/single family homes, condominiums and directly to municipalities or other borrowers guaranteed by a municipality. Lending to the forestry and agricultural sectors is made through the wholly owned subsidiary Jordbrukskredit.

As at 30 June 2007, lending to the public amounted to SEK 535 billion, and the total market share was 30 percent.


Funding
Swedbank Mortgage finances its lending on the Swedish and international capital markets. At 30 June 2007, 56 percent of the total funding was raised from foreign money and capital markets. The purpose of the funding in foreign currencies is to broaden the investor base, which increases funding opportunities.

Standardized funding programmes which are legally adjusted to different types of markets and investors are used for a large part of Swedbank Mortgage's funding. The reason is to standardize the funding process, which is necessary regarding the size of its total balance, which amounted to SEK 594 billion as at 30 June 2007.