On 4 December, Nykredit and Totalkredit have conducted a number of stand-alone
auctions of covered bonds (SDOs) and mortgage bonds (ROs) in connection with the
interest rate reset of ARMs (Nykredit's Tilpasningslån and Totalkredit's
BoligXlån) based on the auction price principle. The interest rates will be
reset on 1 January 2010.
The auctions had an average bid-to-cover rate of 3.7, and bond sales totalled
DKK 18.4bn and EUR 0.6bn in nominal terms.
For a retail borrower with a 30Y annuity loan of DKK 1m (33% tax allowance), the
interest rate reset of SDOs to be effected on 1 January will result in the
following cash rates and monthly net payments:
ARMs ARMs ARMs ARMs
funded by funded by funded by funded by
1Y bonds 3Y bonds 5Y bonds 1Y bonds
(F1/X1) (F3/X3) (F5/X5) (F1)
DKK DKK DKK EUR
Key figures for 2008
- Cash rate, with repayments 5.22% 4.52% 4.63% 4.12%
- Monthly net payment, with repayments DKK 4,362 DKK 4,130 DKK 4,164 EUR 537
Key figures for 2009
- Cash rate, with repayments 1.65% 2.75% 3.29% 1.31%
- Monthly net payment, with repayments DKK 3,355 DKK 3,617 DKK 3,760 EUR 442
- Cash rate, interest-only 1.63% 2.75% 3.29% 1.30%
- Monthly net payment, interest-only DKK 1,191 DKK 1,813 DKK 2,115 EUR 135
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.
Results of stand-alone auctions based on the auction price principle
| Source: Nykredit Realkredit A/S