18. May 2015
S2693 - D81721
Reminder: Redemption of Danish mortgage covered bonds will be harmonised to EU standards
Due to EU harmonisation and the introduction of a pan-European settlement platform for securities transactions (T2S) the redemption of Danish mortgage covered bonds will be changed. The Danish Mortgage Banks' Federation (Realkreditforeningen) and the Association of Danish Mortgage Banks (Realkreditrådet) have previously informed about the new redemption model in two press releases dated respectively 24 May 2013 and 9 January 2015.
The first expected redemption rates in the new redemption model will be announced to the market on the announcement day 22 May 2015 for bonds with payment date 1 October 2015.
The new redemption model will be implemented for redemptions with payment dates after 21 September 2015.
Yours sincerely
Danish Mortgage Banks' Federation (Realkreditforeningen)
Association of Danish Mortgage Banks (Realkreditrådet)
Further information:
· The redemption model is described in the joint press release by the Danish Mortgage Banks' Federation and the Association of Danish Mortgage Banks’ published via NASDAQ OMX Copenhagen A/S on 24 May 2013.
· Joint press release by the Danish Mortgage Banks' Federation and the Association of Danish Mortgage Banks’ published via NASDAQ Copenhagen A/S on 9 January 2015.
· Information about changes at VP SECURITIES and VP LUX can be found here.