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.
