On 2 December 2011, the Nykredit group has conducted the sale of bonds 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 2012.
The auction had a bid-to-cover rate of 2.6, and bond sales totalled DKK 11.0bn in nominal terms.
The refinancing resulted in historically low rates. For a retail borrower with a 30Y annuity loan of DKK 1m (32% tax allowance), interest rate reset results in the following cash rates and monthly net payments:
|
ARMs funded by 1Y bonds (F1/X1) DKK |
ARMs funded by 3Y bonds (F3/X3) DKK |
ARMs funded by 5Y bonds (F5/X5) DKK |
ARMs funded by 1Y bonds (F1/X1) EUR |
|
| Key figures for 2012 | ||||
| Cash rate, with repayments | 1,08% | 1,44% | 1,96% | 0,98% |
| Monthly net payment, with repayments | DKK 3.250 | DKK 3.330 | DKK 3.440 | EUR 430 |
| Cash rate, interest-only | 1,07% | 1,43% | 1,96% | 0,97% |
| Monthly net payment, interest-only | DKK 890 | DKK 1.100 | DKK 1.390 | EUR 110 |
| Key figures for 2011 | ||||
| Cash rate, with repayments | 1,58% | 2,19% | 2,84% | 1,34% |
| Monthly net payment, with repayments | DKK 3.340 | DKK 3.480 | DKK 3.640 | EUR 440 |
| Cash rate, interest-only | 1,56% | 2,17% | 2,84% | 1,33% |
| Monthly net payment, interest-only | DKK 1.150 | DKK 1.490 | DKK 1.860 | EUR 140 |
For detailed information on the bond sales, please refer to 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.
