New Issue: Merrill Lynch prices $20.41 million 6.5% STEP Income Securities tied to Petrobras for Svensk

By Angela McDaniels

Tacoma, Wash., Jan. 18 - AB Svensk Exportkredit priced $20.41 million of 6.5% STEP Income Securities due Jan. 27, 2012 linked to the American Depositary Receipts of Petroleo Brasileiro, SA via Merrill Lynch, Pierce, Fenner & Smith Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The payout at maturity will be par of $10 plus 3.51% if the ADRs finish at or above the step level, which is 106.5% of the initial ADR price.

If the ADRs finish at or above the threshold level - 95% of the initial price - but below the step level, the payout will be par.

Investors will lose 1% for every 1% that the final ADR price falls below the threshold level.

Issuer:	AB Svensk Exportkredit
Issue:	STEP Income Securities
Underlying ADRs:	Petroleo Brasileiro, SA (NYSE: PBR)
Amount:	$20,414,790
Maturity:	Jan. 27, 2012
Coupon:	6.5%, payable quarterly
Price:	Par of $10.00
Payout at maturity:	If ADRs finish at or above step level, par plus 3.51%; if ADRs finish at or above threshold level but below step level, par; 1% loss for every 1% that final ADR price falls below threshold level
Initial share price:	$37.79
Step level:	$40.25, or 106.5% of initial price
Threshold value:	$35.90, or 95% of initial price
Pricing date:	Jan. 13
Settlement date:	Jan. 20
Underwriter:	Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:	1.75%
Cusip:	01019M256

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