The Nykredit group has conducted bond sales in connection with the refinancing of ARMs based on the 10-day average price principle. The interest rates will be reset on 1 October 2012.
Historically low rates
The refinancing resulted in historically low rates. For a retail borrower with a 30Y annuity loan of DKK 1m (32.7% tax allowance), interest rate reset results in the following cash rates and monthly net payments:
|
ARMs funded by 1Y bonds (F1) DKK |
ARMs funded by 3Y bonds (F3) DKK |
ARMs funded by 5Y bonds (F5) DKK |
|
| Key figures for 2012 | |||
| Cash rate, with repayments | 0.38% | 0.68% | 1.22% |
| Monthly net payment, with repayments | DKK 3,180 | DKK 3,230 | DKK 3,340 |
| Cash rate, interest-only | 0.38% | 0.68% | 1.23% |
| Monthly net payment, interest-only | DKK 550 | DKK 730 | DKK 1,040 |
| Key figures for 2011 | |||
| Cash rate, with repayments | 1.22% | 1.7% | 2.19% |
| Monthly net payment, with repayments | DKK 3,270 | DKK 3,370 | DKK 3,480 |
| Cash rate, interest-only | 1.21% | 1.69% | 2.19% |
| Monthly net payment, interest-only | DKK 950 | DKK 1,220 | DKK 1,500 |
For detailed information on the bond sales, please refer to nykredit.com/ir.
Enquiries may be addressed to Lars Mossing Madsen, First Vice President, Group Treasury, tel +45 44 55 11 66, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.
