Company announcement no. 46, 2017 – Auction of covered mortgage bonds in Nordea Kredit Realkreditaktieselskab.

In order to refinance Nordea Kredit CIBOR-based loans as per 1 July 2017 Nordea Kredit will conduct an electronic auction on 30 May 2017.

Nordea Kredit will refinance the CIBOR-based loans by issuing a new covered mortgage bond (SDRO). The refinancing auction will be performed by Nordea Danmark, branch of Nordea Bank AB (publ), Sweden.

Covered mortgage bond
DK0002038587  NDACIBOR6OA21RF
The auction

The auction will take place at the auction market for covered bonds at NASDAQ Copenhagen. The participant code for the offer is NOA.

The bonds will be offered at 100.20. Bids should be made for the margin to be added to the reference interest rate at the recurring fixings of the coupon.

The coupon as per 1 July 2017 will be fixed in this way: 6 month CIBOR per 27 June multiplied by 365/360 plus the margin set at the auction. The interest rate is rounded to two decimals.

Investors should note that the margins set at the auction on 30 May 2017 will apply for the full maturity of the bond.

The auction will be conducted using the Dutch auction principle and the “hidden call” auction type. This means that all bids below the margin set at the auction will be fully allocated. For bids at the margin set at the auction, pro rata allocation may apply. Bids above the margin set at the auction will not be allocated.
Auction date The auction will take place on Tuesday 30 May 2017.
Rating The offered covered mortgage bonds are rated Aaa by Moody’s and AAA by Standard & Poor’s, respectively.
Auction volume DKK 14.8 bn. The amount will be issued with VP Securities on 24 May, 2017
Price The bonds are offered at 100.20.
Additional terms

Nordea Kredit is not obliged to sell the full published amount at the auction.
Nordea Kredit may change the announced sales period including postponing or cancelling the planned sale of bonds.

The auction will open at 9 a.m. and close at 10.30 a.m. Accepted bids will be allocated at 10.40 a.m.
Bids must be made for the margin on the reference interest rate and bids with up to two decimals will be accepted.
Settlement date 3 July 2017.

Anyone with access to the auction market for covered bonds at NASDAQ OMX may place a bid.

In case of technical problems bids may be placed with Nordea Markets. Please contact Bjarne Hammeken at phone +45 33 33 17 07 or Frank Klahsen at phone +45 33 33 14 44.

If you have further questions please contact Nordea Group Treasury & ALM, Peter Brag at phone +45 33 33 16 63 or Finn Nicolaisen at phone +45 33 33 16 25.

Kind regards

Nordea Kredit Realkreditaktieselskab