Company announcement no. 103, 2023 – Auction of covered mortgage bonds in Nordea Kredit Realkreditaktieselskab
In order to refinance Nordea Kredit EURIBOR3-based loans as per 1 January 2024 Nordea Kredit will conduct an electronic auction on 21 November 2023.
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: DK0002059310
Name: NDAEURIBOR3 OA27
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 2024 will be fixed in this way: 3 month EURIBOR per 21 December 2023 multiplied by 365/360 plus the margin set at the auction. The interest rate is rounded to two decimals.
Investors should note that the margin set at the auction on 21 November 2023 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 21 November 2023.
Rating The offered covered mortgage bonds are rated AAA by Standard & Poor’s.
LCR category None
Auction volume EUR 40m. The amount will be issued with VP Securities on Friday 17 November 2023.
Price The bonds are offered at price 100.20.
Additional terms Nordea Kredit is not obliged to sell the full offered amount at the auction. 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 11.15 a.m. Accepted bids will be allocated latest at 11.25 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 2 January 2024.
Spot settlement Investors have the option of receiving new covered mortgage bonds allocated at the auction with spot settlement provided that the investor delivers maturing Nordea Kredit covered mortgage bonds in EUR to Nordea Bank Abp. This exchange of bonds can be arranged by contacting Peter Brag or Arni Karstin Bjarnason at the day of the auction no later than 2.00 p.m.
Participants In case of technical problems bids may be placed with Nordea Markets. Please contact Jacob Revsbech at +45 33 33 16 43 or Brian Christophersen 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 Arni Karstin Bjarnason at +45 33 33 18 21.
Kind regards
Nordea Kredit Realkreditaktieselskab