Company Announcement No. 12, 2012 - Auction of mortgage covered bonds in Nordea Kredit Realkreditaktieselskab

With the refinancing of Nordea Kredit's adjustable rate mortgages (ARMs) as of 1 April 2012 an electronic auction will be held from 28 February 2012 up to and including 1 March 2012.

The ARMs will be refinanced in covered mortgage bonds (SDRO). Nordea Bank Danmark will conduct the auction.

The Auction  
The auction will be held in the market for mortgage bonds at NASDAQ OMX Copenhagen.

The Dutch (hidden call) auction principle will be applied, implying that where bids exceed the stop price, the full amount will be settled at the stop price. Bids made at the stop price may be allocated on a pro rata basis. There will be no allocation in respect of bids below the stop price.

Auction period  
Tuesday, 28 February, up to and including Thursday, 1 March 2012.

Amount                            
Final volumes offered will be announced in week 6, 2012.

In case the amount to be auctioned in a particular covered mortgage bond is very small, no auction will be held for this covered mortgage bond.

Nordea Kredit has no obligation to sell the entire amount announced at the auction.

Bid/settlement    
The auction of bonds with 1-year maturity will start at 10.00 and close at 12.00 every day. Allocation of accepted bids will be made at 12.10. Bids in bonds with 1-year maturity denominated in DKK and EUR can be placed with 3 decimals.

The auction on all other bonds will start at 10.00 and close at 14.00. Allocation of accepted bids will be made at 14.10. Bids in other auctioned bonds can be placed with 2 decimals only.

Settlement date   
2 April 2012.

Participant   
Bids can be made by anyone with an access to the market for mortgage bonds at NASDAQ OMX Copenhagen.
 In case of technical problems, bids can further be made to Nordea Markets. Contact persons are Michael Rosentoft phone no. +45 3333 3864 and Kim Petersen phone no. +45 3333 1644.

Nordea Kredit will run a test auction of bonds with 1-year maturity in DKK.

The following terms will apply to the test auction:

Auction date                      
Tuesday 21 February 2012.

Bond                                  
2% Nordea KreditINKapr 2013 (ISIN code DK000202371-2).

Amount                             
DKK 50m.

Bid/settlement                  
The auction will start at 10.00 and close at 11.30. Accepted bids will be allocated at 11.40. Bids can be placed with 3 decimals.

Settlement                         
2 April 2012.

Participants  
Bids can be made by anyone with access to the market for mortgage bonds on OMX Nordic Exchange Copenhagen
 

For more detailed information please contact Nordea Group Funding, Kamilla Skytte phone no. +45 3333 1626 or Peter Brag phone no. +45 3333 1663.

Yours faithfully

Nordea Kredit Realkreditaktieselskab
 

Nordea Kredit,  overview of February and March auctions 2012