New Issue: Merrill Lynch prices $13.41 million 8% STEP Income Securities linked to Cisco for Svensk

By Angela McDaniels

Tacoma, Wash., Oct. 21 - AB Svensk Exportkredit priced $13.41 million of 8% STEP Income Securities due Nov. 4, 2011 linked to the common stock of Cisco Systems, Inc. through Merrill Lynch, Pierce, Fenner & Smith Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If the stock finishes at or above the step level - 108% of the initial share price - the payout at maturity will be par of $10 plus 4.76%.

If the stock finishes at or above the initial share price but below the step level, the payout will be par.

Investors will be fully exposed to any share price decline.

Issuer:	AB Svensk Exportkredit
Issue:	STEP Income Securities
Underlying stock:	Cisco Systems, Inc. (Nasdaq: CSCO)
Amount:	$13,405,650
Maturity:	Nov. 4, 2011
Coupon:	8%, payable quarterly
Price:	Par of $10.00
Payout at maturity:	If final share price is greater than or equal to step level, par plus 4.76%; if final share price is greater than or equal to initial price but less than step level, par; full exposure to losses
Initial share price:	$22.95
Step level:	$24.79, 108% of initial price
Pricing date:	Oct. 19
Settlement date:	Oct. 26
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:	1.75%
Cusip:	01019M397

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