New Issue: Merrill Lynch sells $28.04 million 7.5% STEP Income notes on Halliburton for Svensk

By Marisa Wong

Madison, Wis., May 31 - AB Svensk Exportkredit priced $28.04 million of 7.5% STEP Income Securities due June 11, 2012 linked to the common stock of Halliburton Co. via Merrill Lynch, Pierce, Fenner & Smith Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If the stock price finishes at or above the step level - 107.5% of the initial price - the payout at maturity will be par of $10 plus 6.19%.

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

Investors will lose 1% for every 1% decline beyond 5%.

Issuer:	AB Svensk Exportkredit
Issue:	STEP Income Securities
Underlying stock:	Halliburton Co. (NYSE: HAL)
Amount:	$28,043,440
Maturity:	June 11, 2012
Coupon:	7.5%, payable quarterly
Price:	Par of $10.00
Payout at maturity:	If final share price is greater than or equal to step level, par plus 6.19%; if final share price is greater than or equal to threshold price but less than step level, par; otherwise, 1% loss for every 1% decline beyond 5%
Initial share price:	$50.29
Step level:	$54.06, 107.5% of initial share price
Threshold price:	$47.78, 95% of initial level
Pricing date:	May 26
Settlement date:	June 3
Underwriter:	Merrill Lynch, Pierce, Fenner & Smith Inc.
Fees:	1.75%
Cusip:	01019A823

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