Company announcement no. 41, 2016 – Auctions of covered mortgage bonds in Nordea Kredit Realkreditaktieselskab.
In order to refinance “Kort rente” (CITA-based) and CIBOR-based loans as per 1 July 2016 Nordea Kredit will conduct two electronic auctions on 24 and 25 May 2016.
Nordea Kredit will refinance both the “Kort rente” (CITA based) and the CIBOR-based loans by issuing new covered mortgage bonds (SDRO). The refinancing auctions will be performed by Nordea Bank Danmark.
| Covered mortgage bonds |
DK0002036458 NDACITA6OA19RF |
| DK0002036375 NDACIBOR619RF (bullet bond) | |
| DK0002036532 NDACIBOR6OA19RF | |
| The auctions | The auctions will take place at the Auction market for covered bonds at NASDAQ Copenhagen. The participant code for the offer is NOA. |
| The NDACITA6OA19RF bond (ISIN-code DK0002036458) will be offered at 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 July 2016 is fixed in this way: 6 month CITA per 27 June multiplied by 365/360 plus the margin set at the auction. The interest rate is rounded to two decimals. | |
| The NDACIBOR619RF (ISIN-code DK0002036375) and the NDACIBOR6OA19RF (ISIN-code DK0002036532) bonds are likewise offered at 100.20. For these bonds bids should be made the same way i.e. for the margin to be added to the reference interest rate at the recurring fixings of coupons. | |
| The coupons as per 1 July 2016 are fixed in this way: 6 month CIBOR per 27 June multiplied by 365/360 plus the margin set at the auction. The interest rate is rounded to two decimals. | |
| Investors should note that the margins set at the auctions on 24 and 25 May 2016 will apply for the full maturity of the bonds. | |
| The auctions 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 auctions will be fully allocated. For bids at the margin set at the auctions, pro rata allocation may apply. All bids above the margin set at the auctions will not be allocated. | |
| Auction dates | The auctions will take place on Tuesday 24 and Wednesday 25 May 2016. |
| Rating | The offered covered mortgage bonds are rated Aaa with Moody’s and AAA with Standard & Poor’s, respectively. |
| Auction volumes | Auction volumes and specific dates for the auctions of individual bonds are expected to be published during week 19. |
| The three new bonds will probably be used to finance new loans later on. This means that the amounts of bonds in circulation will likely increase. | |
| Additional terms | Nordea Kredit is not obliged to sell the full published amounts at the auctions. |
| Nordea Kredit may change the planned sales period including postponement or cancellation of the planned sale of bonds. | |
| Bids/Allocation | The auctions will open at 10 a.m. and close at either 10.30 or 11.30 a.m. Accepted bids will be allocated at 10.40 or 11.40 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 | 1 July 2016. |
| The bonds in circulation at VP Securities will be increased by the auction amounts on 20 May 2016. | |
| Participants | Anyone with access to the market for covered bonds at NASDAQ OMX may place a bid. |
| In case of technical problems bids may be placed with Nordea Markets. Please contact Bjarne Hammeken at phone +45 33 33 17 07 or Kim Bek Petersen at phone +45 33 33 16 44. |
If you have further questions please contact Nordea Group Treasury & ALM, Peter Brag at phone +45 33 33 16 63 or Finn Nicolaisen at phone +45 33 33 16 25.
Kind regards
Nordea Kredit Realkreditaktieselskab
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