The Nykredit group has conducted bond sales in connection with the refinancing of ARMs (Nykredit's Tilpasningslån and Totalkredit's BoligXlån) based on the 10-day average price principle. The interest rates will be reset on 1 april 2012.
The auction had a bid-to-cover rate of 2.6, and bond sales totalled DKK 98.1bn in nominal terms.
Historically low rates
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 | 0.89% | 1.23% | 1.83% | 0.85% |
| Monthly net payment, with repayments | DKK 3,270 | DKK 3,340 | DKK 3,470 | EUR 440 |
| Cash rate, interest-only | 0.88% | 1.22% | 1.84% | 0.84% |
| Monthly net payment, interest-only | DKK 840 | DKK 1,030 | DKK 1,390 | EUR 110 |
| Key figures for 2011 | ||||
| Cash rate, with repayments | 2.07% | 2.82% | 3.37% | 1.92% |
| Monthly net payment, with repayments | DKK 3,450 | DKK 3,630 | DKK 3,780 | EUR 460 |
| Cash rate, interest-only | 2.05% | 2.81% | 3.37% | 1.90% |
| Monthly net payment, interest-only | DKK 1,430 | DKK 1,850 | DKK 2,160 | EUR 180 |
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.
