Nykredit and Totalkredit have concluded bond sales in connection with the refinancing of ARMs (Nykredit's Tilpasningslån and Totalkredit's BoligXlån) based on the 10-day average price principle. Interest rates will be reset on 1 January 2011.
Bonds totalling DKK 70.5bn and EUR 4.9 (DKK 36.8bn) in nominal terms were sold in the reset period to fund ARMs subject to interest rate reset based on the 10-day average price principle. The auctions had an average bid-to-cover rate of 2.6.
For a retail borrower with a 30Y annuity loan of DKK 1m (33% tax allowance), interest rate reset results 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 2011
Cash rate, with repayments 1.60% 2.26% 2.88% 1.41%
Monthly net payment, with repayments DKK 3,340 DKK 3,490 DKK 3,650 EUR 440
Cash rate, interest-only 1.58% 2.24% 2.88% 1.40%
Monthly net payment, interest-only DKK 1,160 DKK 1,530 DKK 1,890 EUR 140
Key figures for 2010
Cash rate, with repayments 1.81% 2.82% 3.33% 1.39%
Monthly net payment, with repayments DKK 3,390 DKK 3,630 DKK 3,770 EUR 440
Cash rate, interest-only 1.79% 2.81% 3.33% 1.38%
Monthly net payment, interest-only DKK 1,280 DKK 1,850 DKK 2,140 EUR 140
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.
