Company announcement no. 106, 2018 - Auctions of covered bonds in Nordea Kredit Realkreditaktieselskab.

The refinancing of Nordea Kredit ARMs with annual refinancing on 1 January 2019 will be conducted via auctions of covered mortgage bonds (SDRO). The covered mortgage bonds are rated Aaa and AAA by Moody´s and Standard & Poor´s, respectively.

The auctions will be performed by Nordea Bank and they will be held at the NASDAQ Copenhagen auction market on Tuesday, 20 November and Wednesday, 21 November 2018.

The auctions will open daily at 9.00 a.m. and close either by 10.00 a.m. or 11.00 a.m., see the table on page 3 for details. Investors will be notified of accepted bids as soon as possible but no later than by 10.09 a.m. or 11.09 a.m., respectively.

Bids with up to three decimals will be accepted for 1-year maturities. In other ISINs only bids with up to two decimals will be accepted. The auctions will be performed using the Dutch auction principle and the auction type hidden call. This means that all bids above the cut off price will be allocated in full at the cut-off price. Bids at the cut-off price may be allocated pro rata. Bids below the cut-off price will not be allocated any bonds.2

The auction amounts and time schedules can be seen in the table in the pdf-file. Nordea Kredit is not obliged to sell the full offered auction amount at the auctions.

The new covered bonds will be allocated to investor bond accounts on Wednesday, 2 January 2019.

The covered bonds to be auctioned by 20 November and 21 November 2018 will be registered at VP Securities on Friday, 16 November 2018.

The auction results and provisional interest rates can be seen at www.nordeakredit.dk press” Investor information” and at https://www.nordea.dk/privat/produkter/boliglaan/foelg-auktionen.html

Investors have the option of receiving new covered mortgage bonds allocated at the auction with spot settlement provided that the investor delivers maturing non-callable Nordea Kredit covered mortgage bonds to Nordea Bank. This exchange of bonds can be arranged by contacting either Peter Brag or Finn Nicolaisen at the day of the auction no later than 1.00 p.m. Their contact phones numbers appear below.

In case of technical problems bids can be made to Nordea Markets. Please contact either Brian Christophersen at +45 33 33 16 93 or Frank Klahsen at +45 33 33 14 44.

The new covered mortgage bonds are subject to the provisions on the regulation of the refinancing risk in the Mortgage-Credit-Loans & Mortgage-Credit-Bonds etc. Act. The auction trigger applies to all the new covered mortgage bonds. For the covered mortgage bonds maturing no later than 1 October 2021 the interest rate trigger applies as well.

The following applies to covered mortgage bonds subject to the auction trigger:
In case of a failed auction the provisions of the law, pls cf. above, lay down restrictions on the final sale and allocation of covered mortgage bonds.

The following applies to covered mortgage bonds subject to the interest rate trigger:
In connection with the refinancing of covered mortgage bonds a ceiling for the increase of the effective interest rate applies. The effective interest rate cannot increase by more than 5 percentage points. This limit on the rise of the effective interest rate is a condition for the final sale and allocation of new covered mortgage bonds subject to the interest rate trigger at the auctions.

Questions in connection with the auctions may be directed to Nordea, Long Term Funding, Peter Brag at +45 33 33 16 63 or Finn Nicolaisen at +45 33 33 16 25.
  

Yours faithfully

Nordea Kredit Realkreditaktieselskab

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