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Swedbanka?s Early Redemption and Buyback of Subordinated Loans

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^{Published in Business and Finance on Wednesday, June 8th 2011 at 1:40 GMT by Market Wire}  

STOCKHOLM--([ BUSINESS WIRE ])--Regulatory News:

Swedbank (STO:SWEDA)(LSE:SWK)(Pink Sheets:SWDBF) is working actively to manage the banka™s capital structure and as a part of this process has applied for, and been granted, approval by Finansinspektionen (SFSA) to buy back issued, subordinated Tier 2 loans amounting to SEK 5bn. SFSAa™s approval is valid until 31 August 2011.

The buybacks will be made for subordinated loans where Swedbank has the right to exercise early redemption during 2011 and 2012. Furthermore, Swedbank will, supported by SFSAa™s approval, redeem outstanding Tier 2 loans amounting to GBP 97.8m (XS0257529296) at the time of the banka™s right to exercise early redemption on 22 June 2011.

Swedbank does not at this point plan to issue any new subordinated loans to replace the loans bought back or redeemed early. The banka™s focus as regards securing stability in its balance sheet is on its Core Tier 1 capital, as previously communicated. Since mid-2008 Swedbank has increased its Core Tier 1 ratio by 7.4 percentage units to 14.9% in March 2011.

The buybacks will be handled by Swedbank Markets and Bank of America Merrill Lynch. The maximum volume to be bought back is SEK 5bn in compliance with SFSAa™s approval, but the actual volume bought back could amount to less depending on the marketa™s willingness to sell the above mentioned loans. Swedbank currently does not intend to launch tender offers in the market for any of its outstanding subordinated loans.

For information regarding the buyback process please contact:
Ted Karlsson, Swedbank Markets DCM, tel: +46 8 700 99 87
Rasmus Persson, Bank of America Merrill Lynch, tel: +44 20 7995 6438

Please findthe Tier 2 loans affected by this statement:

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