Nykredit and Totalkredit auction conditions

Nykredit Realkredit A/S

To Nasdaq Copenhagen

2022-05-03

Nykredit and Totalkredit auction conditions

The total bond supply under the Adjustable Rate Mortgage (ARM) Interest Rate Adjustment and Floating Rate Loan Refinance at the Nykredit and Totalkredit Refinance Auctions is expected to rise at approx. 23.3 billion Danish crowns. The auctions will take place from May 17 to 20, 2022.

During the auction period, Nykredit Realkredit A/S will publish daily the amounts offered in the individual ISINs at nykredit.com/ir.

The terms of the auctions including a list of the bonds offered, the amounts offered and an auction calendar are set out in Annexes 1 and 2.

Questions regarding the sale of bonds as well as technical questions can be directed to Nykredit Realkredit A/S, Group Treasury, Emil Schmidt Andreasen, tel. +45 44 55 22 72.

Any other questions can be addressed to Corporate Communications, tel +45 44 55 14 50.

Appendix 1: Auction Terms

Bonds Offered, Amounts Offered and Auction Schedule
Appendix 2 contains auction schedules, lists of bonds offered, expected amounts and settlement dates. The tables indicate whether Nykredit Realkredit A/S expects the bonds to be offered at auction.

Each morning at 09:00 CET during the auction period, the amounts offered that day in individual ISINs will be published on nykredit.com/ir under “Debt”, where you will find information on the refinancing auctions.

Refinancing Principles – ARM
The Nykredit Group offers fixed rate non-callable bullet covered bonds for the adjustment of ARM interest rates on the basis of the “refinancing price” principle.

For the adjustment of interest rates to the refinancing price, the bonds are sold at one or more bond auctions. The price is set as a weighted average of the prices obtained at auction.

If the Nykredit group finds that the amount of bonds offered at an auction is not sufficient to obtain a price consistent with the market, the refinancing price will instead be based on the consolidated reference price of the bond in question listed at Nasdaq Copenhagen.

Principles of refinancing – variable rate loans
Floating rate loans are refinanced at three stand-alone auctions.

  • ISIN DK000953474-5 is no itaffordable. The mortgage guarantee is offered and settled at a price of 100.20. Based on the offer price, offers must be made according to the reference rate spread used for regular fixing of the coupon.

  • ISIN DK000953458-8 is not callable. The mortgage guarantee is offered and settled at a price of 100.20. Based on the offer price, offers must be made according to the reference rate spread used for regular fixing of the coupon.

  • ISIN DK000953733-4 is vsaffordable at a price of 105 and has a cap of 3%. The mortgage guarantee is offered and settled at a price of 100.20. Based on the offer price, offers must be made according to the reference rate spread used for regular fixing of the coupon.

Credit ratings
All bonds auctioned through Capital Center H and G are rated AAA by S&P.

Auction
Offers of fixed rate non-callable bullet covered bonds must be made in terms of amount and price. For bonds maturing within 14 months, offers must be made at prices correct to three decimal places. Other offers must be made to two decimal places.

For all DKK-denominated bonds, bids must be made in multiples of DKK 100,000, and for all EUR-denominated bonds in multiples of EUR 10,000.

Several offers can be made in the same ISIN.

Auction Type
Mortgage bonds issued through Capital Center H ang G will be auctioned through Nasdaq Copenhagen’s auction submarket: 136 – CPH Auctions. Participants are stockbrokers and investors with access to the Nasdaq Copenhagen auction submarket.

Award
With respect to obligations for which offers are made in terms of price, offers above the set price will be settled in full, and offers at the set price may be accepted on a pro rata basis.

For bonds where bids are made in terms of the benchmark spread, bids below the cut-off spread will be settled in full, and bids at the cut-off spread may be accepted on a pro rata basis.

All completed transactions will be published via Nasdaq Copenhagen.

The auction will take place as soon as possible, but no later than 10 minutes after closing.

Conditional bond offering with interest rate trigger
A condition of the final completion of a sale (attribution) of bonds offered with an interest rate trigger is that the yield to maturity of the bonds does not increase by more than 5 percentage points. Reference is made to the Danish law on mortgages and mortgage bonds, etc.

Value date
All bonds will be subject to lengthy settlement. The value date of all transactions executed at auction will be the 1st July 2022.

Rreverse installation
As the bonds traded will be subject to a lengthy settlement, Nykredit Realkredit A/S offers a reversal option to auction participants whose bids have been accepted and who demand the bonds after only two days.

By means of the reverse facility, Nykredit Realkredit A/S offers to sell the allocated bonds subject to the conventional two settlement days and then to buy them back with 1st July 2022 as value date.

The size of the reverse facility will be determined on an individual basis but cannot exceed the amount allocated to each individual bidder. The reverse facility may be made conditional on the investor providing a matching amount of bonds maturing on 1st July 2022.

Reverse installations will be arranged on an individual basis. Please contact Nykredit Realkredit A/S, Group Treasury, Simon Sanderhoff, tel. +45 44 55 40 93.

Bidding reservations
If, contrary to expectations, technical problems prevent Nykredit Realkredit A/S from conducting an auction via AUPD on Bloomberg’s auction submarket or Nasdaq Copenhagen, an exchange announcement containing the practical details of the auction will be published.

Faucet sales
On-tap sales are made on May 17 and 18, 2022. Bids can be made on these days by contacting Nykredit Realkredit A/S, Group Treasury.

Other terms
Nykredit Group is not obligated to sell the advertised offer, and the offer may further be subject to change following loan disbursements during the auction period. In addition, all or part of the offer may be postponed, but no later than the penultimate working day of this quarter.

By the penultimate business day of that quarter at the latest, it must be verified whether the number of buyers was sufficient for all the covered bonds offered. If a bond sale is to be cancelled, the market will be informed immediately by a stock exchange announcement.

Appendix 2: Settlement deadlines and amounts offered for bonds issued by VScapital Center H and G

IS IN

Capital Center

IT / RF*

Coupon

Due date

Auctions on

Interest rate trigger

CSF level

Cash

Auction Dates

Rules

Offer
(million)

To start up

To finish

Cut

Award

DK0009532616

ODS(H)

THIS

1

04/01/2023

Price

4.68%***

1b

DKK

05/17/2022

11:30 a.m.

11:40

1,300

DK0009796864

ODS(H)

RF

1

07/01/2023

Price

1b

DKK

Sale in tap shoes**

50

DK0009521841

ODS(H)

RF

1

01/07/2024

Price

1b

DKK

Sale in tap shoes**

200

DK0009526139

ODS(H)

RF

1

07/01/2025

Price

1b

DKK

05/18/2022

11:30 a.m.

11:40

1,500

DK0009531485

ODS(H)

RF

1

01/07/2026

Price

1b

DKK

Sale in tap shoes**

50

DK0009534315

ODS(H)

RF

1

01/07/2027

Price

1b

DKK

05/17/2022

05/20/2022

10:30

10:40

9,700

DK0009534745

OR (G)

RF

Adjustable

01/01/2025

Yield

unleveled

USD

05/19/2022

13:00

13:10

40

DK0009534588

ODS(H)

RF

Adjustable

01/01/2025

Yield

1b

DKK

05/20/2022

11:30 a.m.

11:40

9,500

DK0009537334

ODS(H)

RF

Adjustable

07/01/2034

Yield

unleveled

DKK

05/20/2022

13:00

13:10

750

* (IT) Interest rate and refinancing trigger / (RF) Refinancing trigger
** Tap sales take place on May 17 and 18, 2022.
*** The trigger interest rate applicable to the bond as determined during the February 2022 refinancing auctions and published on 28and February 2022.

Please note that Nykredit Group is not obligated to sell the advertised offer, and the offer may additionally be subject to change following loan disbursements during the auction period. In addition, all or part of the offer may be postponed, but no later than the penultimate working day of this quarter. The table above only includes ISINs whose amount exceeds an equivalent value of DKK 50 million.

By the penultimate business day of that quarter at the latest, it must be verified whether the number of buyers was sufficient for all the covered bonds offered. The market must be informed of this immediately through a company announcement.

Attachment

Comments are closed.