Company announcement no. 11, 2019 - Auctions of covered mortgage bonds in Nordea Kredit Realkreditaktieselskab.

The refinancing of Nordea Kredit ARMs with annual refinancing on 1 April 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 Abp and they will be held at the NASDAQ Copenhagen auction market on Tuesday, 5 February and Wednesday, 6 February 2019.

The auctions will open daily at 9.00 a.m. and close either by 10.00 a.m. or 12.30 p.m. Investors will be notified of accepted bids as soon as possible after the closing of the auctions but no later than by 10.09 a.m. or 12.39 p.m., respectively.

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.

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.

The auction amount 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.

Settlement date for the new covered bonds is 1 April 2019.

The covered bonds to be auctioned will be registered at VP Securities on Monday, 4 February 2019.

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 Abp. This exchange of bonds can be arranged by contacting Peter Brag at the day of the auction no later than 2.00 p.m.

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 Act”). The auction trigger applies to all the new covered mortgage bonds. For the covered mortgage bonds maturing no later than 1 April 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, please 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.

According to the Act Nordea Kredit cannot initiate refinancing auctions if we do not have a justified expectation that the auctions can be completed. Hence, Nordea Kredit surveys the market situation right up to the auction times. In case of a change in the market situation, Nordea Kredit may choose to either cancel the auctions or change the auction times and/or the terms of the auctions. Such changes will be communicated via a company announcement.

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

Nordea Kredit Realkreditaktieselskab

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