Company announcement no. 102, 2020 – Auction of covered mortgage bonds in Nordea Kredit Realkreditaktieselskab.
In order to refinance Nordea Kredit EURIBOR3-based loans as per 1 January 2021 Nordea Kred-it will conduct an electronic auction on 25 November 2020.
Nordea Kredit will refinance the (EURIBOR3-based) loans by issuing a new covered mortgage bond (SDRO). The refinancing auction will be performed by Nordea Bank.
Covered mortgage bond ISIN: DK0002048974
Name: NDAEURIBOR3 OA24RF
The auction The auction will take place at the auction market at NASDAQ Copenhagen. The participant code for the offer is NOA.
The bonds will be offered at price 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 January 2021 will be fixed in this way: 3 month EURIBOR per 22 December 2020 multiplied by 365/360 plus the mar-gin set at the auction. The interest rate is rounded to two decimals.
Investors should note that the margin set at the auction on 25 Novem-ber 2020 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 mar-gin 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 Wednesday 25 November 2020.
Rating The offered covered mortgage bonds are rated AAA by Standard & Poor’s
LCR category None
Auction volume EUR 90m. The amount will be issued with VP Securities on Friday 20 November 2020
Price The bonds are offered at price 100.20.
Additional terms Nordea Kredit is not obliged to sell the full offered amount at the auc-tion. Nordea Kredit may change the announced sales period including postponing or cancelling the scheduled auction.
Bids/Allocation The auction will open at 9 a.m. and close at 11.45 a.m. Accepted bids will be allocated latest at 11.55 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 The settlement date is 4 January 2021.
Participants Anyone with access to the auction market at NASDAQ OMX may place a bid.
In case of technical problems bids may be placed with Nordea Mar-kets. Please contact Emil Ousager at +45 33 33 18 63 or Brian Chris-tophersen at +45 33 33 16 93.
Questions in connection with the auctions may be directed to Nordea, Long Term Funding, Peter Brag at +45 33 33 16 63 and Lau Kingo at +45 33 33 17 51.
Kind regards
Nordea Kredit Realkreditaktieselskab