Terms for Nykredit's and Totalkredit's auctions - Nykredit
Realkredit A/S
To Nasdaq Copenhagen
Terms for Nykredit's and Totalkredit's
auctions
The total bond offering in connection with the interest rate
adjustment of adjustable-rate mortgages (ARMs) and the refinancing
of floating-rate loans at Nykredit’s and Totalkredit’s refinancing
auctions amounts to approx. DKK 36.2bn. The auctions will be
conducted in the period from 21st to 24th May 2024.
In the auction period, Nykredit Realkredit A/S will publish the
amounts offered in the individual ISINs daily at
nykredit.com/ir.
Terms for the auctions including a list of the bonds offered,
amounts offered and an auction schedule appear from Appendices 1
and 2.
Questions regarding the bond sale as well as technical matters
may be addressed to Nykredit Realkredit A/S, Group Treasury, Emi
Schmidt Andreasen, tel +45 44 55 2272, Christian Mauritzen, tel +45
44 55 10 14 or Lars Mossing Madsen, tel +45 44 55 11 66.
Other questions may be addressed to Corporate Communications,
tel +45 44 55 14 50.Appendix 1: Auction terms
Bonds offered, amounts offered and auction
scheduleAppendix 2 contains auction schedules, lists of
bonds offered, expected amounts and settlement dates.
Every morning at 09:00 CET in the auction period, the amounts
offered on that particular day in the individual ISINs will be
published at nykredit.com/ir under "Debt", where you can find
information on the refinancing auctions.
Refinancing principles – ARMsThe Nykredit Group
offers fixed-rate non-callable bullet covered bonds for interest
rate adjustment of ARMs based on the "refinancing price"
principle.
For interest rate adjustment at the refinancing price, the bonds
are sold at one or more bond auctions. The price is fixed as a
weighted average of the prices obtained at the auctions.
If the Nykredit Group finds that the amount of bonds offered at
an auction is not sufficient to obtain a market-consistent price,
the refinancing price will instead be based on the Consolidated
Reference Price of the bond in question quoted on Nasdaq
Copenhagen.Refinancing principles – floating-rate
loansFloating-rate loans are refinanced at two stand-alone
auctions.
- ISIN DK000954551-9 is non-callable. The mortgage bond is
offered and settled at a price of 100.20. Based on
the offer price, bids must be made in terms of the reference rate
spread used for the regular coupon fixing.Reference Rate: Cita/6
monthsFixing method: Fourth last Business Day (adjusted)
- ISIN DK000954578-2 is non-callable. The mortgage bond is
offered and settled at a price of 100.20. Based on
the offer price, bids must be made in terms of the reference rate
spread used for the regular coupon fixing.Reference Rate: Cita/6
monthsFixing method: Fourth last Business Day (adjusted)
Credit ratingsAll auctioned bonds issued
through Capital Centre H are rated AAA by S&P.
BidsBids for fixed-rate non-callable bullet
covered bonds must be made in terms of amount and price. With
respect to bonds maturing within 14 months, bids must be made in
prices correct to three decimals. Other bids must be made correct
to two decimals.
For all DKK-denominated bonds bids must be made in multiples of
DKK 100,000, and for all EUR-denominated bonds in multiples of EUR
10,000.
More than one bid may be made in the same ISIN.
Type of auctionMortgage bonds issued through
Capital Centre H will be auctioned through Nasdaq Copenhagen’s
auction submarket: 136 – CPH Auctions. Participants are
stockbrokers and investors with access to the auction submarket at
Nasdaq Copenhagen. AllotmentAs regards bonds for
which bids are made in terms of price, bids above the cut-off price
will be settled in full, and bids at the cut-off price may be
accepted on a pro rata basis.
With respect to bonds for which bids are made in terms of
reference rate spread, bids below the cut-off spread will be
settled in full, and bids at the cut-off spread may be accepted on
a pro rata basis.
All trades concluded will be published through Nasdaq
Copenhagen.Allotment at the auctions will take place as soon as
possible, but not later than 10 minutes after closing.
Conditional offering of bonds with interest rate
triggerA condition of the final completion of a sale
(allotment) of bonds offered with an interest rate trigger is that
the yield-to-maturity of the bonds will not rise by more than 5
percentage points. Reference is made to the Danish Mortgage-Credit
Loans and Mortgage-Credit Bonds etc. Act.
Value dateAll bonds at auction will be subject
to long settlement. The value date of all trades executed at the
auctions will be 1st July 2024.
Reverse facilityAs the bonds traded will be
subject to long settlement, Nykredit Realkredit A/S offers a
reverse facility to auction participants whose bids have been
accepted and who require the bonds after only two trading days.
By means of the reverse facility, Nykredit Realkredit A/S offers
to sell the allotted bonds subject to the conventional two
settlement days and subsequently repurchase them with 1st July 2024
as the value date.
The size of the reverse facility will be determined on an
individual basis but cannot exceed the amount allotted to each
individual bidder. The reverse facility can be made conditional on
the investor providing a corresponding amount of bonds maturing on
1st July 2024.
Reverse facilities will be arranged on an individual basis.
Please contact Nykredit Realkredit A/S, Group Treasury, Christian
Mauritzen, tel +45 44 55 10 14.
Reservations regarding auctions If, contrary to
expectations, technical problems should prevent Nykredit Realkredit
A/S from conducting an auction through Nasdaq Copenhagen's auction
submarket, a stock exchange announcement will be issued containing
the practical details of the auction.
Tap salesTap sales are made on 21st and 22nd
May 2024.
Other termsThe Nykredit Group is not obliged to
sell the announced offering, and the offering may furthermore be
subject to changes following loan disbursements in the auction
period. In addition, the entire or parts of the offering may be
postponed, but not later than the second-last business day of this
quarter.
On or before the second-last business day of this quarter, it
must be ascertained whether the number of purchasers was sufficient
for all the covered bonds offered. If a sale of bonds has to be
cancelled, the market will be notified immediately by a stock
exchange announcement.
Appendix 2: Settlement times and amounts offered for
bonds issued through Capital Centre H and G.
ISIN |
Capital centre |
IT / RF* |
Coupon |
Maturity date |
Bids on |
Interest rate trigger |
LCR level |
Currency |
Auction dates |
Settlement |
Offering (million) |
|
|
|
|
|
|
|
|
|
Start |
End |
Cut-off |
Allotment |
|
DK0009526139 |
SDO (H) |
RF |
1 |
01/07/2025 |
Price |
- |
1b |
DKK |
Tapsale |
|
|
300 |
DK0009531485 |
SDO (H) |
RF |
1 |
01/07/2026 |
Price |
- |
1b |
DKK |
Tapsale |
|
|
400 |
DK0009534315 |
SDO (H) |
RF |
1 |
01/07/2027 |
Price |
- |
1b |
DKK |
21/05/2024 |
23/05/2024 |
10:30 |
10:40 |
4,400 |
DK0009545196 |
SDO (H) |
RF |
1 |
01/07/2029 |
Price |
- |
2a |
DKK |
22/05/2024 |
23/05/2024 |
11:30 |
11:40 |
1,700 |
DK0009543654 |
SDO (H) |
IT / RF* |
1 |
01/04/2025 |
Price |
8,25% |
1b |
DKK |
21/05/2024 |
11:30 |
11:40 |
2,200 |
DK0009545519 |
SDO (H) |
RF |
Adjustable |
01/07/2027 |
Yield |
- |
1b |
DKK |
24/05/2024 |
10:30 |
10:40 |
13,600 |
DK0009545782 |
SDO (H) |
RF |
Adjustable |
01/07/2027 |
Yield |
- |
1b |
DKK |
24/05/2024 |
11:30 |
11:40 |
13,600 |
* (IT) Interest
rate and refinancing trigger / (RF) Refinancing
trigger** Tap sales
are conducted on 21st and 22nd May 2024.
Please note that the Nykredit Group is not obliged to sell the
announced offering, and the offering may furthermore be subject to
changes following loan disbursements in the auction period. In
addition, the entire or parts of the offering may be postponed, but
not later than the second-last business day of this quarter.
On or before the second-last business day of this quarter, it
must be ascertained whether the number of purchasers was sufficient
for all the covered bonds offered. The market must be notified
hereof immediately by way of a company announcement.
- Terms for Nykredit and Totalkredit's auctions