Swedish equity release and reverse mortgage securitisation: first of its kind in Europe

Stockholm,                                                                      
3 September 2010                                                                

Home loans provider, Svensk Hypotekspension AB, through its wholly-owned subsidiary Svensk           
Hypotekspension Fond 1 AB (publ), has issued SEK 900,000,000 mortgage backed    
notes divided into two classes, SEK 318,000,000 with floating rate interest and 
SEK 582,000,000 with fixed rate interest. The notes have been given an ‘AA'     
rating by Fitch Ratings Ltd and will be listed on NASDAQ OMX Stockholm today, 3 
September.                                                                      

The initial investors primarily consist of major Swedish pension fund managers. 

The bonds are backed by a portfolio of so called equity release                 
mortgages/reverse mortgages that Svensk Hypotekspension successfully has        
marketed since 2005. The mortgages are loans for seniors 60+, secured by real   
property or cooperative flats, with interest accumulating until the borrower    
moves permanently from the property or dies. The timing of interest payments and
repayment of principal on the notes is dependent on the cash flow from the      
portfolio. The entire documentation is governed by Swedish law and the          
collateral is held by CorpNordic Sweden AB, who is also acting as agent for the 
bondholders.                                                                    

The transaction was the first securitisation to utilise a Swedish domestic      
issuer since 2004, and the first European securitisation of equity release      
collateral since 2005.