Issuers: Debenture loans are issued by banks, credit companies and other borrowers.

Type of debt instrument: Promissory note payable to a specified person. Normally a fixed interest instrument with annual interest payment, but zero coupon issues have also been made.

Maturity: Over two years from issue date.

Denomination: Varies.

Issuers: Issues are made when the borrower has a financing need and these can be considered an alternative to issuing bonds. These bonds are normally taken up by larger investors, for example, insurance companies.

Secondary market: The liquidity in debenture loans is Sweden cannot be considered as being high. The liquidity in zero coupon debentures is slightly better. These bonds can be traded on Retail Bonds list, which is an electronic exchange within OMX Nordic Exchange Stockholm.

Valuation: The pricing of a debenture bond is stated as a real annual interest rate. The buyer does not pay a nominal amount, but pays the market price of the loan plus any accrued interest since the last interest payment date. For ex-coupon debenture loans there is no accrued interest on transfer.

Delivery and settlement: Delivery and settlement of debenture loans takes place three days following the transaction date. The interest payment is received on the same day as the interest payment into the account which has been given by the holder when registering the acquired debenture certificates with the issuer. Alternatively the debenture certificates may be issue by VPC (the Swedish Central Securities Depository).
 

All information provided on this page shall be deemed to be general information regarding the instruments that can be traded at the exchange. For accurate rules for trade with the instruments we refer to the rules and regulations. Information on this page shall under no circumstances constitute any recommendation regarding investment decisions. The visitor shall be personally liable for the risks associated with any investment decision based on information provided on this page. Notwithstanding that the accuracy of the information provided herein has been verified, Stockholmsbörsen assumes no liability with respect to the accuracy or use of such information.