Sweden raised $2.5 billion at 0.242% in a two-year bond sale, the National Debt Office said in a statement on Tuesday.

The debt office said the sale was part of its funding plan and proceeds would be used to refinance loans to Sweden's central bank.

"Our loan was met by significant demand, mainly from Central Banks. The large orderbook enabled pricing the loan at favorable terms," it said in a statement.

Final pricing was fixed at 1 basis point above USD Mid swaps and 10 basis points above the corresponding US benchmark, according to the statement.

The bid volume reached $4.7 billion with more than 70 investors taking part, it said.