To NASDAQ OMX Copenhagen A/S
30 October 2014
Announcement no. 115/2014
Sales of bonds for refinancing of adjustable rate mortgage loans
From 19th to 26th of November 2014 (inclusive), BRFkredit will sell bonds to refinance adjustable rate mortgage loans. Refinancing will be carried out in both BRFkredit’s RTL F bonds, announced on 3rd June 2014, and in traditional non-callable bullet bonds.
The bonds are offered for sale with 2nd of January as settlement date. However, an earlier settlement date can be arranged.
BRFkredit currently expects to sell bonds totalling approx. DKK 49 bn. This amount includes both interest rate adjustments of existing loans and funding of new loans to be transferred to BRFkredit under the existing joint funding agreements. Refinancing of loans under the joint funding agreements totals approx. DKK 7.6 bn., and funding of new loans totals approx. DKK 7.4 bn.
The refinancing and interest rate adjustments of loans in Capital Centre E are based on covered bonds (SDOs), whereas in Capital Centre B loans and interest rate adjustments are based on mortgage bonds (ROs).
BRFkredit will carry out the bond sales via Bloomberg’s auction system. Post-trade information will be disclosed through NASDAQ OMX Copenhagen.
Expected amounts to be offered during the period – subject to change:
| Bond | Currency | Expected amount |
|
RTL F – 01/01/2018 SDO RTL F – 01/01/2018 SDO RTL F – 01/01/2018 RO RTL F – 01/01/2018 SDO 2% BRF 01/04/2016 SDO 4% BRF 01/01/2017 SDO 4% BRF 01/01/2018 SDO 2% BRF 01/10/2019 SDO 4% BRF 01/01/2020 SDO |
DKK DKK DKK EUR DKK DKK DKK DKK DKK |
21,0 bn 13,6 bn* 4,8 bn 0,2 bn 1,0 bn** 1,0 bn 3,4 bn 0,9 bn** 2,0 bn |
*To be sold in separate auctions to refinance ISIN DK0009382541
** The offered amount is a result of borrowers changing their annual refinancing to either April or October
Bids for the offered bonds must be made in terms of amount and price correct to three decimals. Bids above the fixing price will be settled in full at the fixing price. Bids at the fixing price may be accepted on a pro rata basis.
BRFkredit’s daily bond sales in relation to the disbursement of new mortgage loans, purchases of bonds in relation to redemption of existing mortgage loans and purchases for the investment of surplus liquidity will be executed in parallel with the above mentioned sales.
If technical problems should prevent BRFkredit from conducting an auction, a stock exchange announcement will be issued, detailing how the auction will be carried out in practice.
BRFkredit reserves the right not to sell the offering announced.
Technical questions regarding the bond sales may be directed to:
- Head of Investments, André Hauberg on telephone (+45) 45 26 29 18
- Group Treasurer, Anders Lund Hansen on telephone (+45) 45 26 22 80
Yours sincerely,
BRFkredit a/s
Lars Waalen Sandberg
Executive Vice President
Please observe that the Danish version of this announcement prevails.