On 11 March, Nykredit and Totalkredit have conducted stand-alone auctions of covered bonds (SDOs) in connection with the interest rate reset of ARMs (Nykredit's Tilpasningslån (F1-F3) and Totalkredit's BoligXlån (X1-X3)) based on the auction price principle. The interest rates will be reset on 1 April 2010. The auctions had an average bid-to-cover rate of 6.0, and bond sales totalled DKK 1.0bn and EUR 20m in nominal terms. For a retail borrower with a 30Y annuity loan of DKK 1m (33% tax allowance), the interest rate reset of loans funded by SDOs to be effected on 1 April will result in the following cash rates and monthly net payments: ARMs ARMs ARMs funded by funded by funded by 1Y bonds 3Y bonds 1Y bonds (F1/X1) (F3/X3) (F1) DKK DKK EUR Cash rate, with repayments 1.64% 2.45% 1.27% Monthly net payments, with repayments DKK 3,350 DKK 3,570 DKK 3,280 Cash rate, interest-only 1.62% 2.44% 1.26% Monthly net payment, interest-only DKK 1,220 DKK 1,670 DKK 980 For detailed information on the bond sales, please refer to Appendix 1 and nykredit.com/ir. Enquiries may be addressed to Henrik Hjortshøj-Nielsen, Executive Vice President, Group Treasury, tel +45 44 55 10 40, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.
Results of stand-alone auctions based on the auction price principle
| Source: Nykredit Realkredit A/S