Nykredit and Totalkredit have concluded bond sales in connection with the refinancing of ARMs (Nykredit's Tilpasningslån and Totalkredit's BoligXlån) based on the 10-day average price principle. Interest rates will be reset on 1 October 2010. Bonds totalling DKK 44.3bn 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 3.4. 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: -------------------------------------------------------------------------------- | | ARMs | ARMs | ARMs funded | | | funded by | funded by | by 5Y bonds | | | 1Y bonds | 3Y bonds | (F5/X5) | | | (F1/X1) | (F3/X3) | DKK | | | DKK | DKK | | -------------------------------------------------------------------------------- | Key figures for 2010 | -------------------------------------------------------------------------------- | Cash rate, with repayments | 1.33% | 1.81% | 2.32% | -------------------------------------------------------------------------------- | Monthly net payment, with repayments | DKK 3,290 | DKK 3,390 | DKK 3,510 | -------------------------------------------------------------------------------- | Cash rate, interest-only | 1.31% | 1.80% | 2.32% | -------------------------------------------------------------------------------- | Monthly net payment, interest-only | DKK 1,010 | DKK 1,280 | DKK 1,570 | -------------------------------------------------------------------------------- | Key figures for 2009 | -------------------------------------------------------------------------------- | Cash rate, with repayments | 2.20% | 3.15% | - | -------------------------------------------------------------------------------- | Monthly net payment, with repayments | DKK 3,480 | DKK 3,720 | - | -------------------------------------------------------------------------------- | Cash rate, interest-only | 2.18% | 3.14% | - | -------------------------------------------------------------------------------- | Monthly net payment, interest-only | DKK 1,490 | DKK 2,030 | - | -------------------------------------------------------------------------------- For detailed information on the bond sales, please refer to Appendix 1 and nykredit.com/ir. Enquiries may be addressed to Lars Mossing Madsen, Head of Mortgage Finance, tel +45 44 55 11 66, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.
Results of refinancing based on the 10-day average price principle
| Source: Nykredit Realkredit A/S