Results of refinancing based on the 10-day average price principle


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.
 


Attachments

Results of refinancing based on the 10-day average price principle - 14 12 2010.pdf
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