Nykredit and Totalkredit to spread refinancing auctions further

1/8/2013 3:30 AM EST

Nykredit Realkredit A/S
Company Announcement

Nykredit and Totalkredit to spread refinancing auctions further

From 8 February 2013, Nykredit and Totalkredit will introduce ARMs
(adjustable-rate mortgages) with interest rate adjustment on 1 July, thus
expanding the number of annual interest rate adjustment dates from three to
four. 

This expansion to four annual interest rate adjustment dates is a continuation
of Nykredit and Totalkredit's strategy of distributing the refinancing auctions
more evenly over the year. Currently, Nykredit and Totalkredit are the only
Danish issuers to spread their refinancing volumes over three annual
refinancing dates. 

In 2005, Nykredit and Totalkredit were the first mortgage lenders to introduce
two additional refinancing dates besides the one in December. Since then,
Danmarks Nationalbank has followed up with a call for the mortgage sector to
increase the number of refinancing dates. 

The purpose of spreading the auctions over the year is to reduce refinancing
risk in the financial sector, and is part of Nykredit and Totalkredit's efforts
towards financial sustainability. 

Standard from the summer of 2013
As from this summer, new DKK ARMs with 1–5-year funding will be offered with
interest rate adjustment as at 1 July as standard. The loans are financed by
SDO bonds (base loan) and the rate is adjusted no earlier than 1 July 2014. 

For new loans financed by RO bonds (top loan), the interest rate is still
adjusted on 1 April. 

Existing ARMs continue unchanged, and there are no changes in connection with
the adjustment of interest rates or interest periods. 

Contacts
Enquiries may be addressed to Henrik Hjortshøj-Nielsen, Executive Vice
President, Group Treasury, tel +45 44 55 10 40, or Nels Petersen, Head of
Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72. 

Please see pdf attached.