Company Announcement No. 38, 2013 - Auction of mortgage covered bonds in Nordea Kredit Realkreditaktieselskab
To refinance Nordea Kredit's CIBOR loans at 1 July 2013 an electronic auction will be held in May 2013.
Nordea Kredit will refinance the CIBOR loans in covered mortgage bonds (SDRO). Nordea Bank Danmark will conduct the auction.
| The Auction | The auction will take place at Genium Inet at the NASDAQ OMX Copenhagen. |
| The bonds, Nordea C6 OA July 2016 (ISIN-code DK000202924-8) will be offered at the price of 100 – and bids must be made for the fixing-spread which is to be added to or subtracted from the 6 month CIBOR, quoted on 25 June 2013. | |
| The coupon of the bonds from 1 July 2013 will be fixed on the basis of the 6 month CIBOR, quoted on 25 June 2013 multiplied by 365/360 added to/subtracted from the fixing-spread at the auction. The fixed rate will be rounded to 2 decimal. | |
| Investors must be aware, that the fixing-spread will remain valid until the maturity date of the bonds. | |
| The Dutch auction principle and hidden call method will be applied, implying that bids below the cut-off fixing spread will be settled at the full amount. Bids at the exact cut-off fixing spread may be allocated on a pro rata basis. All bids above the cut-off fixing spread will not be settled. | |
| Auction date | Wednesday 29 May 2013 |
| Amount | The final volume offered will be announced in week 19, 2013. |
| Nordea Kredit has no obligation whatsoever to sell the entire amount announced at the auction. | |
| Bid/settlement | The auction opens at 10.00 a.m. and closes at 11.00 a.m. Accepted bids will be allocated at 11.10 a.m. |
| Bids can be placed with 2 decimals. | |
| Settlement date | 1 July 2013 |
| Participants | Bids can be made by anyone with access to the market for mortgage bonds at the 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 prior to the auction on 22 May 2013.
The following terms will apply to the test auction:
| Auction date | Wednesday, 22 May 2013 |
| Bond | Nordea C6 OA July 2016 (ISIN-code DK000202924-8) |
| Amount | DKK 20m. |
| Maximum bid | Bids up to a maximum of DKK 1.000.000 will be accepted. |
| Bid/settlement | The auction will start at 10.00 a.m. and close at 11.00 a.m. Accepted bids will be allocated at 11.10 a.m. |
| Bids can be placed with 2 decimals. | |
| The bond will be offered at the price of 100 – and bids must be made for the fixing-spread which is to be added to or subtracted from the 6 month CIBOR, quoted on 25 June 2013 multiplied by 365/360. | |
| As the fixing-spread cannot differ between the test auction and the auction on 29 May 2013, the cut-off fixing-spread from the auction on 29 May 2013 will replace the result of the test auction. | |
| Settlement | 1 July 2013 |
| 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, Peter Brag phone no. +45 3333 1663 or Finn Nicolaisen on phone no. +45 3333 1625.
Yours faithfully
Nordea Kredit Realkreditaktieselskab