To
NASDAQ OMX Copenhagen
Executive Board
Parallelvej 17
DK-2800 Kgs. Lyngby
www.rd.dk
Telephone +45 7012 5300
18 November 2008
Company Announcement number 76 - 2008
Terms and conditions for the auctions of bond series 10S and 10Q
As earlier announced Realkredit Danmark will hold an auction on mortgage
covered bonds for the refinancing of FlexLån® in series 10S and 10Q over ten
trading days from Monday, 1 December, through Friday, 12 December 2008.
In November Realkredit Danmark will successively announce the preliminary
amount of bonds to be auctioned. The amount of bonds will change until the
auction to the extent of forward rate agreements entered into, prepayments or
shift in the loan profile of the FlexLån®.
The preliminary amount will announced in the present announcement and in an
announcement on Tuesday, 25 November 2008. The final amount of mortgage bonds
to be auctioned will be announced no later than 2 December 2008.
The preliminary amount of bonds to be auctioned and the exact terms and
conditions of the auctions are set out in the appendices to this announcement
Any additional questions should be addressed to Senior Dealer Søren Gravgaard,
phone +45 45 13 20 19.
The Executive Board
Terms and conditions of Realkredit Danmark's auction to be held from
1 to 12 December 2008
Auction
The auction will take place at NASDAQ OMX Copenhagen's mortgage-issuing
sub-market. The Dutch auction principle and hidden call method will be used.
Under the Dutch auction principle, all bids above the cut-off prices will be
settled in full at the cut-off prices. For bids at the exact cut-off price,
proportional allocation may be used. All bids below the cut-off prices will not
be settled. Hidden call means that the bidders can only see their own bids,
whereas the issuer can see all bids.
Decimal points:
Investors may place their bids at prices with up to three decimal places for
1-year bonds maturing in 2010 in both the 10S and 10Q series.
For the rest of the securities identification codes offered, bids may contain
only two decimal places.
Bonds
Realkredit Danmark will put mortgage covered bonds in series 10S and 10Q,
maturing from 2010 to 2014 on the auction. The final amounts offered in each
series will be announced no later than December 2, 2008.
Bids/settlement
The auction will be held with three cut off periods 11.00am, 12.30pm and
1.30pm.
The IPMO is set to 10 minutes.
The following mortgage covered bonds will be offered:
Date Cut off period Settlement DKK
10S
Preliminary amount DKK m. EUR
10Q
Preliminary amount EUR m.
1.-12.
December 2008 11.00am 11.10am 2010 95,951 2010 2,791
12.30pm 12.40pm 2012 9,728 -
2014 4,594 -
9 December 2008
1.30pm 1.40pm 2011 1,340 2011 22
2013 499 2012 66
- 2013 1
- 2014 18
* The amount will change to the extent of forward rate agreements entered into,
prepayments or shift in the loan profile
Value date:
2 January 2009.
Participants:
Bids will be accepted from all members with access to NASDAQ OMX Copenhagen's
mortgage-issuing sub-market.
Other conditions:
1. Realkredit Danmark is not under any obligation to sell the entire amount
announced at the auctions.
2. On each auction day, Realkredit Danmark will not trade in the securities
identification code or codes offered on the auction at the specific auction day
prior to the announcement the results of the auction.
