Company announcement no. 109, 2021 – Auction of covered mortgage bonds in Nordea Kredit Realkreditaktieselskab.
In order to refinance Nordea Kredit EURIBOR3-based loans as per 1 January 2022 Nordea Kredit will conduct an electronic auction on 24 November 2021.
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: DK0002052497
Name: NDAEURIBOR3 OA25RF
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 2022 will be fixed in this way: 3 month EURIBOR per 23 December 2021 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 24 November 2021 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 Wednesday 24 November 2021.
Rating The offered covered mortgage bonds are rated AAA by Standard & Poor’s.
LCR category 2A
Auction volume EUR 280m. The amount will be issued with VP Securities on Friday 19 November 2021.
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 10.45 a.m. Accepted bids will be allocated latest at 10.55 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 3 January 2022.
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 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 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.
Nordea Kredit Realkreditaktieselskab