Sweden has sold the remaining half of its stake in the biggest bank in the region, Nordea, The sale netted US$3.0 billion and the proceeds would be used to pay off debts at the time that its current government would be heading into an election year.
The sale volume was at 260 million Nordea shares which is above the original ceiling of 230 million shares. The increase was in response to strong investor demand and taking its hold down rate from a high of 13.4% to just 7.0%.
The shares were sold at 75 crowns per share, which is price lower than its value at market close last Tuesday. 25% of the shares were bought by local Nordic investors while the remaining shares were sold overseas.
The coalition government of Sweden had ramped up its privatization during its first term in offie, after it held a clear majority in Parliament. The program though was cut back because of the 2009 financial crisis had depressed asset prices.
As stated, the proceeds of the sale would be used to pare down national debt, which is already amongst lowest in the Eurozone, as it is currently at 30% of the country's economic output.
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