Geneva · Private Lombard Credit · By Introduction
United Kingdom & Europe Stockholm SEK

Lombard loans in Sweden.

Private, securities-backed credit against Sweden-listed shares — pledged, not sold, with ownership retained.

A Lombard loan against Sweden-listed shares is credit secured by a pledge of equity listed on the Stockholm. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment. It is a loan against shares rather than a sale of them — the Geneva private-banking form of what is elsewhere called a share-backed loan.

Key takeaways
  • Lombard loans are arranged against shares listed on the Stockholm (Nasdaq Stockholm).
  • The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
  • Loan-to-value is calibrated to the specific position, funded in SEK or cross-currency.
  • Structured under the FI regime, with disclosure from 5%.

Eligible collateral and venues

Lombard Financing arranges facilities against equity listed on the principal Sweden venue: Nasdaq Stockholm (Nasdaq Stockholm). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.

Regulator and disclosure

Shares listed in Sweden are regulated by Finansinspektionen (FI). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.

Funding, custody, and structuring

Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in SEK or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing. One distinction is worth drawing at the outset: this is not a stock loan in the securities-lending sense, where title passes to a borrower who may on-lend or short the line. Here the shares are pledged and remain the holder’s throughout, as the comparison of Lombard, margin, and stock-loan structures sets out.

Listing venue(s)Nasdaq Stockholm (Nasdaq Stockholm)
RegulatorFinansinspektionen (FI)
CurrencySEK (cross-currency available)
Disclosure thresholdFrom 5% substantial-holding disclosure
Principal indicesOMXS30, OMX Stockholm All-Share
Indicative tenor12–36 months, renewable by agreement
RecourseNon-recourse / limited-recourse / full-recourse

Detail by listing venue

Each venue has a page of its own, setting out how securities-backed credit is arranged against shares admitted there — the disclosure regime, the settlement and custody chain, the eligible segments, and the currency in which a loan against shares is normally drawn.

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Lombard loans across United Kingdom & Europe.

In Depth Regulatory & Structuring Detail

On this market, specifically.

The market and its listed universe

Nasdaq Stockholm heads a market unusually large for the size of the economy, with the OMXS30 at the top of a Large, Mid and Small Cap main list, Nasdaq First North Growth Market beneath it, and Spotlight and NGM as further domestic venues; Stockholm has been one of Europe’s busiest listing markets for a decade. The structural signature is the sphere. Listed investment companies — Investor, Industrivärden, Lundbergs, Latour and Kinnevik among them — sit at the centre of clusters of industrial holdings, and behind several of them stand foundations. Underneath runs the most widespread use of dual-class shares in Europe, A shares carrying ten votes to a B share’s one. Float in the B line is deep; control almost never trades.

Who borrows against listed shares here

Swedish concentrated ownership is organised, visible and long-lived. The spheres built around Investor, Industrivärden, Lundbergs, Latour and Kinnevik hold their industrial positions through A shares and have done so for generations, several of them ultimately answering to a foundation whose purpose is research funding. Alongside them is a newer cohort: founders from Stockholm’s technology and consumer listing wave who still own large stakes in companies they built. Neither group finds selling easy. For the spheres a disposal surrenders the voting architecture that is the entire point; for the founders it is a signal to a market that watches and publishes insider dealings closely. Borrowing against shares funds the next venture, the property or the family settlement instead.

Disclosure and regulation

Under the Swedish Financial Instruments Trading Act, a voting-rights holder notifies Finansinspektionen at 5% and then at the higher steps up to 90%. A Lombard loan against a Stockholm-listed holding keeps ownership and the vote with the client, so the pledge itself does not cross these flagging levels. Sweden's disclosure follows the EU pattern, with the 5% first threshold giving a little more room than the 3% markets before a position becomes reportable. For a client near a level, we still draw the credit and any collateral terms so that enforcement would not force an unplanned filing or disturb a family holding built over generations.

The legal form of the security

Swedish security is a pantsättning, and Swedish law is exacting about the perfection step, the sakrättsliga moment, which for dematerialised instruments is the account registration or the notice described above rather than any signature. Swedish law has traditionally been hostile to a creditor simply keeping the collateral, and the Commercial Code constrains a pledgee’s freedom to realise; the financial collateral provisions in the Swedish securities trading legislation are what open up out-of-court sale and, for qualifying arrangements, appropriation. Whether a given facility qualifies is the question for Swedish counsel, together with two local specifics: how any conversion clause attaching to A shares would operate on a transfer, and whether a shareholders’ agreement inside the sphere restricts encumbering the block at all.

Custody and how security is taken

Swedish shares are dematerialised with Euroclear Sweden, the former Värdepapperscentralen, under the accounts legislation governing the Swedish book-entry system. Holdings take one of two forms and the difference is operative for a stock loan. Owner-registered shares sit on a VP account in the holder’s own name, and a pledge is registered on that account with Euroclear Sweden itself. Nominee-registered shares sit behind a custodian, and security is taken by notice to that custodian, which records it in its own books. Which route applies determines who must act, what evidence of the pledge exists and how quickly it can be put in place, so the first step in a Swedish facility is establishing exactly how the client’s holding is registered rather than assuming.

Currency and cross-border considerations

The krona floats freely. Sweden is in the European Union but outside the euro and outside ERM II, and the Riksbank targets inflation without any exchange rate commitment, so the krona has travelled a long way against the euro in both directions over the past decade. Currency is therefore the live structuring issue in a Swedish facility: collateral valued in kronor supporting a drawing in euros or dollars adds a second source of volatility on top of the equity, and it should be sized on purpose rather than by default. There are no exchange controls and no approval needed to take security or repatriate proceeds. Sweden’s investment screening regime, in force since December 2023 and run by the Inspectorate of Strategic Products, is the enforcement-side question.

Tax questions to put to your adviser

For a Swedish tax adviser. Sweden has no securities transfer tax — it tried one in the 1980s, watched trading migrate to London, and repealed it — and it has neither a wealth tax nor inheritance and gift tax, so the frictions that shape a Spanish or German facility are simply absent here. The Swedish questions lie elsewhere. Is interest on the borrowing deductible in the capital income category, and within what limits? Does the security arrangement change the treatment of the underlying holding in any way? And, critically, if the shares sit in an investeringssparkonto or an endowment wrapper, can they be pledged at all without the account losing its favourable status? Ask before drawing, not after.

General information only — not tax advice. Treatment turns on your own circumstances and residence, and on law that changes.

An illustrative example

By way of illustration, a family office holding an OMXS30 constituent might arrange a Lombard loan against it rather than sell. The holding stays in the client's name, dividends and voting rights continue, and no shares are sold. The advance can be drawn in Swedish kronor or in another currency where the family's commitments lie. Loan-to-value is not something we publish, since it is determined by the collateral: the depth and average traded volume of the listed B line, its volatility, the genuine float once founder, foundation and sphere blocks are set aside, how concentrated the position is against the issuer and within the family's wealth, any restriction in a shareholders' agreement, and the mismatch between krona collateral and a drawing in another currency. A diversified book of liquid large caps supports a materially different advance from one concentrated First North line, and the assessment is made only after the holdings have been reviewed. Illustrative only, offered to show the shape of a facility rather than to indicate any rate, advance or term.

Illustrative only — not an offer, a quotation, or a commitment to lend.

FAQ Sweden

Lombard loans in Sweden, answered.

Q · 01Can I borrow against Sweden-listed shares without selling them?
Yes. A Lombard loan against Sweden-listed shares is a pledge, not a sale: you keep beneficial ownership, dividends (subject to structuring), and the upside, and recover the position in full on repayment. Cash is advanced against a fraction of the pledged shares' market value.
Q · 02What loan-to-value is available on Sweden shares?
Loan-to-value is set per position, not per market. Liquidity and free float, volatility, the size of the holding relative to daily volume, single-name concentration, and the recourse profile all drive the figure. Indicative ranges are issued after a review of the specific holding; there is no rate card.
Q · 03Which regulator and disclosure rules apply?
Shares listed in Sweden fall under Finansinspektionen (FI). Substantial-holding disclosure applies from 5%; the pledge and any enforcement are structured with that regime in mind.
Q · 04Our shares are nominee-registered through a bank — does that change how security is taken?
It changes the mechanics rather than the outcome. For owner-registered shares the pledge is registered on the VP account at Euroclear Sweden; for nominee-registered shares it is effected by notice to the custodian holding them, which then records the pledge in its own books. Both are recognised routes, but they involve different parties, different documents and different timing, and a holding split across the two needs both. Establish the registration position with the custodian at the outset, because in Sweden it drives the whole documentation timetable.
Q · 05Could a facility over our A shares create an issue under the Swedish takeover rules?
The borrowing itself leaves the votes with you, so the questions are about enforcement and about who might be regarded as acting in concert. Sweden’s takeover framework works from a controlling proportion of the votes, and with ten-to-one A shares a modest economic stake can carry a large voting one, so the arithmetic moves faster here than in a single-class market. Sweden also has the Swedish Securities Council, which issues rulings on good market practice and can be approached in advance. Where a position is anywhere near a control level, that route is worth taking before drawing.