Since 2004, a new act allows Swedish banks and credit institutions to issue covered bonds. These permit the bondholder to have priority rights over certain assets in the event of the issuer's bancruptcy, and are therefore considered more secure than other type of bonds.
On 14 September 2007, Swedbank Mortgage recieved approval from the Swedish Financial Supervisory Authority to issue covered bonds. The company plans to convert the outstanding long-term funding to covered bonds and to issue its first covered bond during the second quarter of 2008.
In connection with Swedbank Mortgage's issuance of its first covered bond, the company intends to convert outstanding bonds to covered bonds. In order to do this in the same manner, at the same time and on the same conditions for all outstanding bonds of a certain type, Swedbank Mortgage has proposed that the terms and conditions for certain older bonds are amended to be the same as for the bonds of the same type.
Below are the proposed amendments of terms and conditions regarding older issues under the Swedish mortgage bond programme as well as the EMTN programme.
