Correction: Swedbank to redeem two subordinated bonds

Press Release February 8, 2010

This press release replaces the previous version sent out. The amendment

consists of a so-called CUSIP number that has been added for the Hybrid

Tier 1 bond.

Swedbank will redeem two of its outstanding subordinated bonds; the

Hybrid Tier 1 subordinated bond (ISIN XS0109209493), CUSIP US87019XAA19,

in the amount of USD 300 000 000 and the Lower Tier 2 subordinated bond

(ISIN XS0216216845) in the amount of USD 246 550 000. Each redemption

will take place on the first available date being March 17, 2010 for the

Hybrid Tier 1 bond and April 30, 2010 for the Lower Tier 2 bond.

Swedbank has at this point no intention to replace either of these bonds

by issuing new subordinated instruments. This statement is in line with

Swedbank's previous announcement regarding its view that the continued

ability to support the Bank's balance sheet should be secured by its

core Tier 1 capital.

"The current pricing of subordinated debt relative to other forms of

capital, is not in our view reflecting the benefit given by the market,

regulators and credit agencies for these instruments. We continuously

review the Bank's capital composition, not least considering the

upcoming regulatory changes. However, at this point we do not plan for a

new issue of subordinated debt" says Jonas Erikson, Head of Treasury at

Swedbank.

Finansinspektionen (SFSA) has given its approval to both redemptions.

For further information please contact:

Thomas Backteman, Head of Corporate Communications, Swedbank, phone:+46

708 311 166

Swedbank's vision is to be the leading financial institution in the

markets where we are present. Swedbank has 9.5 million retail customers

and 600,000 corporate customers with 389 branches in Sweden, 235

branches in the Baltic countries and another 218 branches in Ukraine.

The group is also present in Copenhagen, Helsinki, Kaliningrad,

Luxembourg, Moscow, New York, Oslo, Shanghai, S:t Petersburg and Tokyo.

As of September 30 2009 the group had total assets of SEK 1,815 billion

and approximately 20,000 employees. For more information about Swedbank,

please visit www.swedbank.com

AI Terminal