Published on 2/20/2008 in the Prospect News Structured Products Daily.
New Issue: Goldman upsizes to $23.69 million 98% protected notes linked to six currencies for Svensk
By Laura Lutz
Des Moines, Feb. 20 - AB Svensk Exportkredit priced another $540,000 of zero-coupon 98% principal-protected bull notes due Aug. 22, 2009 linked to a basket of currencies via Goldman, Sachs & Co., according to an FWP filing with the Securities and Exchange Commission.
This tranche priced at 100.6. It brings the total deal size to $23.69 million.
Originally, Svensk priced $23.15 million of the notes at par on Feb. 8.
The basket includes the Brazilian real, Russian ruble, Czech koruna, Malaysian ringgit, New Taiwan dollar and Singapore dollar, each with a 16.667% weight, and the Canadian dollar with a negative 50% weight, all relative to the U.S. dollar.
The final basket return will equal the sum of the real return, the ruble return, the koruna return, the ringgit return, the New Taiwan dollar return and the Singapore dollar return, minus 0.5% and minus half of the Canadian dollar return.
If the final basket return is at least 4.5%, the payout at maturity will be 113% of par. Otherwise, the payout will be 98% of par. In order for investors to receive more than 98% of par, the basket must appreciate against the U.S. dollar at a rate sufficient to more than offset the appreciation, if any, of the Canadian dollar against the U.S. dollar.
Issuer: | AB Svensk Exportkredit
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Issue: | 98% principal-protected bull notes
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Underlying currencies: | Brazilian real (16.667% weight), Russian ruble (16.667 % weight), Czech koruna (16.667% weight), Malaysian ringgit (16.667% weight), New Taiwan dollar (16.667% weight), Singapore dollar (16.667% weight) and Canadian dollar (negative 50% weight), all relative to U.S. dollar
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Amount: | $23,687,000, up from $23,147,000
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Maturity: | Aug. 22, 2009
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If basket return is 4.5% or more, 113% of par; otherwise, 98% of par; basket return will equal the sum of the real return, the ruble return, the koruna return, the ringgit return, the New Taiwan dollar return and the Singapore dollar return, minus 0.5% and minus half of the Canadian dollar return
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Initial exchange rates: | 1.765 reals per U.S. dollar; 24.78 rubles per U.S. dollar; 17.71 koruny per U.S. dollar; 3.2345 ringgits per U.S. dollar; 32.02 New Taiwan dollars per U.S. dollar; 1.4195 Singapore dollars per U.S. dollar; 1.008 Canadian dollars per U.S. dollar
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Pricing date: | Feb. 8 (for $23,147,000); Feb. 18 (for $540,000)
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Settlement date: | Feb. 22
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Underwriter: | Goldman, Sachs & Co.
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Fees: | 0.25%
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