Nordea Kredit will launch a 30-year fixed-rate bond loan with an interest-only period of up to 30 years on 11 October based on covered mortgage bonds. Also, from 1 January 2008 all mortgage loans granted by Nordea Kredit will be financed through covered mortgage bonds - the only exception being variable-rate Euribor loans. With an interest-only period of up to 30 years, homeowners are offered even greater flexibility in their financial planning. At present nine out of ten homeowners choose loans with fixed rates. Now they can choose loans with fixed-rate loan payments and an interest-only period beyond the previous ten years. And the loans offer homeowners an even better opportunity for securing the equity in their homes when refinancing. - Our starting point is what our customers need. That's why our first covered mortgage bond issue is a fixed-rate loan, which is the most popular type of loan right now. It gives customers new opportunities, but with the same simple and transparent cost and prepayment features as our existing products, says Michael Rasmussen, Executive Vice President. As the new loans are callable, homeowners can always prepay their loans at par or by buying the bonds in the market. Administration and reserve fees match the standard rates. The covered mortgage bonds are issued pursuant to the rules set out in the Danish Act no 577 of 6 June 2007 and have a capital adequacy weighting of 10 per cent for credit institutions etc. The new fixed-rate loan will be launched as a block issue. Nordea Kredit to launch variable-rate Euribor loan for commercial and agricultural borrowers on 11 October This Euribor issue is a variable-rate bond loan with quarterly reset to the prevailing 3-month Euribor rate. The issue is targeted towards commercial and agricultural borrowers. The issue is based on mortgage bonds. From 1 January 2008 all Nordea Kredit mortgage loans will be financed through issuance of covered mortgage bonds - except variable-rate Euribor loans From 1 January 2008 all mortgage loans granted by Nordea Kredit will be financed through issuance of covered mortgage bonds - the only exception being variable-rate Euribor loans. All open mortgage bond series will be closed for issuance by the end of 2007 (except Euribor), ensuring a capital adequacy weighting of 10 per cent for credit institutions etc. As the existing mortgage bond series are closed and new covered mortgage bonds are issued, the number of security IDs will increase. For certain security IDs this may create unfortunate lock-in effects where it may prove difficult to buy the underlying bonds at reasonable prices. To counter these effects Nordea Kredit will - if necessary - consider the options provided by Danish legislation for allowing prepayment of mortgage loans in other ways. The same will apply to security IDs already closed. Refinancing of adjustable-rate mortgages at 1 January 2008 by means of covered bond issuance Furthermore, Nordea Kredit expects to issue covered mortgage bonds for the refinancing of its adjustable-rate mortgages at 1 January 2008. New capital centre In accordance with statutory provisions Nordea Kredit will issue covered mortgage bonds from a new capital centre designated Capital Centre 2. Nordea Kredit has decided to apply the specific balance principle. Rating Standard & Poor's and Moody's Investors Service are expected to announce that the covered mortgage bonds issued from Capital Centre 2 will be assigned ratings of AAA and Aaa, respectively. For further information: Michael Rasmussen, Executive Vice President, Chairman of the Board of Directors of Nordea Kredit, +45 33 33 33 63 Claus Christensen, Chief Press Officer, +45 33 33 12 79