On 28 March 2014 Totalkredit and Nykredit pre-issued covered bonds (SDOs and ROs) of DKK 9.2bn in accordance with the rules of the Danish Executive Order on bond issuance, balance principle and risk management of the Danish Financial Supervisory Authority. The pre-issuance is a result of the introduction of new legislation regulating refinancing risk. The pre-issued bonds are not subject to the new legislation.
DKK 9.0bn worth of DKK-denominated bonds and EUR 0.021bn worth of EUR-denominated bonds have been issued. Please refer to the attached appendix for a distribution of the amounts issued by bond ID.
Loan offers may be effected and funded by the pre-issued bonds up to and including 27 September 2014. Totalkredit and Nykredit will subsequently cancel all the bonds not used to fund mortgage loans.
At end-March 2014, in continuation of the pre-issuance, Totalkredit and Nykredit, will cease offering ARMs with 1-year funding in these bonds. New ARMs with 1-year funding will be subject to the new legislation regulating refinancing risk from 1 April 2014.
Questions may be directed to Lars Mossing Madsen, Head of Bond Trading, Group Treasury, tel +45 44 55 11 66, or Morten Bækmand Nielsen, Head of Investor Relations, Group Treasury, tel +45 44 55 15 21.
