Svensk Exportkredit to price two Elements linked to Rogers International Commodity indexes

By Sheri Kasprzak

New York, July 10 - AB Svensk Exportkredit has again announced plans to price Elements linked to two Rogers International Commodity indexes.

One of the zero-coupon notes is linked to the Rogers International Commodity index - Metals Total Return and the other to the Rogers International Commodity index - Energy Total Return.

"In a way, I think they are trying their hand at something very similar to the iPath notes [from Barclays Bank plc]," said one market source. "They're doing it with a sector that is growing in popularity in the U.S. marketplace and I think it will likely be very successful for them."

That market insider noted that Barclays' iPath exchange-traded notes have been linked, successfully, for quite some time now to the Dow Jones - AIG Commodity index.

"The similarities are pretty obvious," he added.

Note terms

The zero-coupon Elements linked to the Rogers International Commodity index - Metals Total Return has a 15-year term and pays par plus the index return, minus an annual investor fee equal to 0.75% times the proportion of days elapsed, at maturity.

Starting 90 days after issuance, the investors may put back the notes for repurchase on a weekly repurchase date, with a minimum put requirement of $5 million in securities.

The index represents the value of a basket of 10 metals commodity futures contracts and is a sub-index of the Rogers International Commodity index - Total Return.

The zero-coupon Elements linked to the Rogers International Commodity index - Energy Total Return, also have a 15-year term and also pay par at maturity plus the index return, less the investor fee.

The repurchase terms are the same as the metals-linked notes.

The index represents a value of a basket of six energy commodity futures contracts and is a sub-index of the Rogers International Commodity index - Total Return.

Both notes are being sold through Nuveen Investments and Merrill Lynch & Co.

Similar notes

Svensk announced plans in June to price other notes using a similar structured, these linked to the Rogers International Commodity index - Energy Total Return and the Rogers International Commodity index - Metals Total Return, as well as linked to the Spectrum Large Cap U.S. Sector Momentum index.

The zero-coupon notes linked to the Spectrum Large Cap U.S. Sector Momentum index pay par times the index change, minus the annual investor fee, at maturity. The notes also have a 15-year term.

The index, developed by BNP Paribas and is also referred to as the S&P Custom/BNP Paribas - Spectrum U.S. Sector Momentum index. The index tracks the notional portfolio of 10 sub-indexes of the S&P 500.

Lehman plans 44.2% reverse convertibles

In other structured products news Tuesday, Lehman Brothers Holdings Inc. said it intends to price reverse exchangeable notes linked to InterOil Corp. with an unusually large 44.2% coupon.

The three-month notes pay par at maturity unless the stock falls below the 70% knock-in level during the life of the notes and finishes below the initial share price. Should that happen, the investor will receive a number of shares equal to $1,000 divided by the initial share price.

The deal is set to price July 26.

Stock performance

On Tuesday, the stock fell by 18 cents to close at $25.22 (Nasdaq: IOC).

So far this month, the stock has traded between $24.11 on July 2 and $26.75 on July 5.

In June, the stock ranged between $43.94 on June 25 and $18.94 on June 29.

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