To NASDAQ Copenhagen A/S
December 11th, 2017
Announcement no. 119/2017
Sales of bonds for financing interest rate capped loans
On December 14th, 2017, BRFkredit will sell capped floating rate bonds (SDO) to finance loans under the joint funding agreement.
The bonds are offered for sale with 2nd of January 2018 as settlement date. However, an earlier settlement date can be arranged.
BRFkredit will carry out the bond sales via Bloomberg’s auction system. Post-trade information will be disclosed through NASDAQ Copenhagen.
The sale will take place in one stand-alone auction with cut off time at 10:00 am. The bonds are offered and settled at a price of 100 (par value). Based on the offer price, bids must be made in terms of the reference rate spread used for the regular coupon fixing. The bidding unit is in full basis points.
The following covered bond (SDO) is offered:
ISIN Name Expected nominal amount
DK0009393829 324.E.Cb3 2021 RF DKK 2.5 bn
Additional terms for the offered bonds are summarized in the appendix to this announcement. Final Terms for the Bonds will be published in a separate announcement.
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, and may also amend, change or cancel the planed auction.
Questions regarding the bond sale may be directed to:
- Afdelingsdirektør, André Hauberg on telephone (+45) 45 26 29 18
- Director, Group Mortgage Funding, 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.
Appendix: Bond terms
The table below summarizes bond terms for the offered bonds. The Final Terms of the bonds will be published in a separate announcement.
| ISIN | DK0009393829 |
| Name | 324.E.Cb3 2021 RF |
| Interest margin | To be determined at auction. |
| Last term date | 1 July 2021 |
| Currency | DKK |
| Term dates | 1.1, 1.4, 1.7 and 1.10 |
| Bond type | Covered bond (SDO) |
| Capital centre | E |
| Rating (S&P) | AAA |
| Interest rate fixing | Quarterly |
| Fixing rate | CIBOR 3M |
| Fixing on date | On the last banking day but four in December, March, June and September |
| Interest rate | Min(CIBOR 3M , 1.5% ) + Interest margin |
| Interest rate cap |
1.5 % + Interest margin. The interest rate cap of the Bonds is composed of a cap of 1.5% on the 3-month CIBOR interest rate and the interest margin, which is determined at the auction. |
| Interest rate floor | No |
| In case of negativ interest rate | The liquidity model applies (offsetting of the negative interest amount against the redemption amount and/or an additional redemption of bonds) |
| Rounding | The interest rate is rounded to two decimals |
| Amortisation | Bullet |
| Subject to the rules for statutory refinancing |
Sales trigger: Yes Interest trigger: No |