No. 40, 2024 – Auctions of covered mortgage bonds in Nordea Kredit
In order to refinance CIBOR-based loans as per 1 July 2024 Nordea Kredit will conduct two electronic auctions on 21 and 22 May 2024. The refinancing auctions will be performed by Nordea Danmark, filial af Nordea Bank Abp.
Covered mortgage DK0002060599 NDACIB6OAJA28
DK0002060672 NDACIB6GOAJA27
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 bonds 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 coupons as per 1 July 2024 are fixed in this way: 6 month CIBOR per 25 June 2024 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 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
DK0002060672 NDACIB6GOAJA27 on Tuesday 21 May 2024
DK0002060599 NDACIB6OAJA28 on Wednesday 22 May 2024
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. Final amounts will be announced at the beginning of May.
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 1 July 2024.
The outstanding amounts at VP Securities will be updated with the auction amounts on 17 May 2024.
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.
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