Company announcement no. 45, 2023 – 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 2023 Nordea Kredit will conduct two electronic auctions on 24 May 2023. The refinancing auctions will be performed by Nordea Danmark, filial af Nordea Bank Abp.
Covered mortgage DK0002058189 NDACIT6OAJA27
DK0002058262 NDACIB6OAJA27
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 NDACIT6OAJA27 bond (ISIN code DK0002058189) 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 2023 is fixed in this way: 6 month CITA per 27 June 2023 multiplied by 365/360 plus the margin set at the auction. The interest rate is rounded to two decimals.
The NDACIB6OAJA27 bond (ISIN code DK0002058262), 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 2023 are fixed in this way: 6 month CIBOR per 27 June 2023 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 May 2023 will apply for the full maturity of the bonds.
Investors should note that the administrator of Cita benchmark (DFBF) has decided to change the underlying methodology around the Cita rate per 1 January 2026. Further information at this link:
https://dfbf.dk/changes-to-the-cita-benchmark/
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 24 May 2023.
Rating The offered covered mortgage bonds are rated AAA with Standard & Poor’s.
Auction volumes The expected auction amount and time schedules can be seen in the table in the pdf file attached.
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.
Settlement date 3 July 2023.
The outstanding amounts at VP Securities will be updated with the auction amounts on 22 May 2023.
Participants Primary Dealers and invited participants with access to the auction market for covered bonds at NASDAQ OMX may place a bid.
Technical Problems In case of technical problems bids can be made to Nordea Markets. Please contact either Brian Christophersen at +45 33 33 16 93 or Jacob Revsbech at +45 33 33 16 43.
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 Cita or Cibor Nordea Kredit covered mortgage bonds to Nordea Bank Abp. This exchange of bonds can be arranged by contacting Peter Brag or Arni Karstin Bjarnason.
New loan offers continue to be issued based on NDACIT6OAJU25 (ISIN code
DK0002057454) and NDACIB6OAJU25 (ISIN code DK0002054196) after 1 July 2023.
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.
Kind regards
Nordea Kredit Realkreditaktieselskab
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