The Nykredit Group will conduct auctions in the period from Thursday 15 August to Thursday 29 August 2013. The auctions comprise refinancing of Nykredit and Totalkredit adjustable-rate mortgages ("Tilpasningslån") in DKK as well as refinancing of Nykredit Cibor- and Euribor-linked loans.
The Nykredit Group currently expects to sell bonds totalling DKK 124bn. Of this amount, DKK 92bn is expected to be in DKK-denominated fixed-rate mortgage covered bonds (RTLs), DKK 24bn in Cibor-linked bonds and equivalent to DKK 8bn in Euribor-linked bonds. The main part of the total auction offering will consist of 1-year mortgage covered bonds (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- | 15 August – 21 | First auction: Bidding until 10:30/allotment at 10:40 |
| ment based on auction prices | August and |
Second auction: Bidding until 11:30/allotment at 11:40 Third auction: Bidding until 13:00/allotment at 13:10 |
| 23 August – 29 | ||
| August | ||
| Floating-rate bonds | 22 August |
First auction: Bidding until 10:30/allotment at 10:40 Second auction: Bidding until 11:30/allotment at 11:40 |
Nykredit's refinancing of SEK loans
Moreover, Nykredit expects to adjust the interest rate of SEK-denominated adjustable-rate mortgages in the same period. The bonds will be sold through syndication and will not follow the above time schedule.
SDO or RO funding
At the auctions, the mortgage covered bonds "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 in Capital Centre H.
• All existing loans funded by ROs in Capital Centre D will be refinanced by ROs in Capital Centre D.
• All existing loans funded by ROs in Capital Centre G will be refinanced by ROs in Capital Centre G.
Preliminary amounts
As in previous years, the auction amounts for refinancing will be affected by pre-payments and refinancing changes. Accordingly, the final amounts may differ from the expected amounts.
Expected auction amounts will be announced at the beginning of August. Subse-quently, 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, Remy Sparvath, Chief Dealer, tel +45 44 55 12 85, or Christian Hald, Dealer, tel +45 44 55 10 63.
Other enquiries may be addressed to Nels Petersen, Head of Corporate Communi-cations, tel +45 44 55 14 70/+45 20 22 22 72.
