Nykredit and Totalkredit have concluded bond sales in connection with the
refinancing of ARMs (Nykredit's Tilpasningslån (F1-F5) and Totalkredit's
BoligXlån (X1-X5)) based on the 10-day average price principle. Interest rates
will be reset on 1 April 2010.
Bonds totalling DKK 45.5bn and EUR 0.9bn in nominal terms were sold in the reset
period to fund ARMs subject to interest rate reset based on the 10-day average
price principle. The auctions had an average bid-to-cover rate of 3.1.
The refinancing resulted in historically low rates. For a retail borrower with a
30Y annuity loan of DKK 1m (33% tax allowance), interest rate reset results in
the following cash rates and monthly net payments:
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| | ARMs | ARMs | ARMs | ARMs |
| | funded | funded | funded by | funded by |
| | by 1Y | by 3Y | 5Y bonds | 1Y bonds |
| | bonds | bonds | (F5/X5) | (F1) |
| | (F1/X1) | (F3/X3) | DKK | EUR |
| | DKK | DKK | | |
--------------------------------------------------------------------------------
| Key figures for April 2010 |
--------------------------------------------------------------------------------
| Cash rate, with repayments | 1.70% | 2.47% | 3.06% | 1.34% |
--------------------------------------------------------------------------------
| Monthly net payment, with | DKK | DKK | DKK 3,700 | EUR 442 |
| repayments | 3,360 | 3,540 | | |
--------------------------------------------------------------------------------
| Cash rate, interest-only | 1.68% | 2.46% | 3.07% | 1.33% |
--------------------------------------------------------------------------------
| Monthly net payment, | DKK | DKK | DKK 1,990 | EUR 137 |
| interest-only | 1,220 | 1,650 | | |
--------------------------------------------------------------------------------
| Key figures for April 2009 |
--------------------------------------------------------------------------------
| Cash rate, with repayments | 3.34% | - | - | - |
--------------------------------------------------------------------------------
| Monthly net payment, with | DKK | - | - | - |
| repayments | 3,775 | | | |
--------------------------------------------------------------------------------
| Cash rate, interest-only | 3.32% | - | - | - |
--------------------------------------------------------------------------------
| Monthly net payment, | DKK | - | - | - |
| interest-only | 2,132 | | | |
--------------------------------------------------------------------------------
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.
