Nykredit will hold bond auctions for DKK 94bn from Thursday 3 March to Thursday 17 March 2011, both dates included. The auctions are conducted for the purpose of refinancing Nykredit and Totalkredit's ARMs (Tilpasningslån and BoligXlån).
The auction schedule is provided below. Detailed information will be published at a later date.
Auction schedule
The auctions will be held according to the following time schedule:
Auction type Dates Auction times
Interest rate adjustment 3 March - 1st auction: Bidding until 10:30/allotment at 10:40
based on 9 March and 2nd auction: Bidding until 11:30/allotment at 11:40
10-day average 11 March - 3rd auction: Bidding until 13:00/allotment at 13:10
prices 17 March
Interest rate adjustment 10 March 1st auction: Bidding until 10:30/allotment at 10:40
based on 2nd auction: Bidding until 11:30/allotment at 11:40
the auction price 3rd auction: Bidding until 13:00/allotment at 13:10
principle
SDO or RO funding
At the auctions, both covered bonds (SDOs) and mortgage bonds (ROs) will be offered.
The guidelines for the choice of bond type are:
- All existing loans funded by SDOs will be refinanced by SDOs
- All existing loans funded by ROs out of capital centre D will be refinanced by ROs out of capital centre D
- All existing loans funded by ROs out of capital centre G will be refinanced by ROs out of capital centre G
The continued use of ROs for commercial lending is directly related to Nykredit’s decision to use two-tier mortgaging.
Preliminary amounts
Nykredit currently expects to sell bonds for a total of DKK 94bn, of which the expected offering amounts to DKK 80bn in DKK-denominated ARMs and DKK 14bn in EUR- demoninated ARMs. The main part will consist of 1-year SDOs. As in previous years, the auction amounts for the refinancing will be affected by prepayments and refinancing changes. Accordingly, the final amounts may differ from expected amounts.
Expected auction amounts will be published at start-February. Subsequently, the expected auction amounts will be updated on an ongoing basis at nykredit.com/ir.
Questions regarding the bond sale as well as technical matters may be addressed to Nykredit Realkredit A/S, Group Treasury, Lars Mossing Madsen, tel +45 44 55 11 66, Christian Mauritzen, tel +45 44 55 10 14, Pernille Bach Ladevig, tel +45 44 55 10 63 or Theis Ingerslev, tel +45 44 55 20 21.
Other enquiries may be addressed to Henrik Hjortshøj-Nielsen, Executive Vice President, Group Treasury, tel +45 44 55 11 66, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.
