The Nykredit Group will conduct auctions in the period from Wednesday 22 August to Thursday 6 September 2012. The auctions comprise refinancing of Nykredit and Totalkredit ARMs (Tilpasningslån and BoligXlån (XR), respectively) as well as refinancing of Nykredit Cibor- and Euribor-linked loans.
The Nykredit Group currently expects to sell bonds totalling DKK 110bn. Of this amount, DKK 101bn is expected to be in DKK-denominated fixed mortgage bullets (RTLs), DKK 7bn in Cibor-linked bonds and equivalent to DKK 2bn in Euribor-linked bonds. The main part of the total auction offering will consist of 1Y SDOs.
The auction schedule is provided below. Detailed information will be published at a later date.
Time schedule
The auctions will be held according to the following time schedule:
| Auction type | Period | Auction times – CET |
| Interest rate adjust- | 22 August – 28 | First auction: Bidding until 10:30/allotment at 10:40 |
| ment based on 10- | August and | Second auction: Bidding until 11:30/allotment at 11:40 |
| day average price | 31 August – 6 | Third auction: Bidding until 13:00/allotment at 13:10 |
| September | ||
| Interest rate adjust | 30 August | First auction: Bidding until 10:30/allotment at 10:40 |
| ment based on | Second auction: Bidding until 11:30/allotment at 11:40 | |
| auction price principle | Third auction: Bidding until 13:00/allotment at 13:10 | |
| Floating-rate bonds | 29 August |
First auction: Bidding until 10:30/allotment at 10:40 Second auction: Bidding until 11:30/allotment at 11:40 |
SDO or RO funding
At the auctions, both "særligt dækkede obligationer" (SDOs) and "realkreditobligationer" (ROs) will be offered. The guidelines for the choice of bond type are:
- All existing loans funded by SDOs will be refinanced by SDOs out of Capital Centre H.
- All existing loans funded by ROs issued out of Capital Centre D will be refinanced by ROs out of Capital Centre D.
- All existing loans funded by ROs issued out of Capital Centre G will be refinanced by ROs out of Capital Centre G.
Preliminary amounts
As in previous years, the auction amounts for refinancing will be affected by prepayments and refinancing changes. Accordingly, the final amounts may differ from the expected amounts.
Expected auction amounts will be announced at the beginning of August. Subsequently, the expected auction amounts will be updated on an ongoing basis at nykredit.com/ir.
Questions relating to the bond sale and technical matters may be addressed to Group Treasury, Lars Mossing Madsen, First Vice President, tel +45 44 55 11 66, or Remy Sparvath, Chief Dealer, tel +45 44 55 12 85.
Other enquiries may be addressed to Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.
