【how many 8ths in a qp】Terms for Nykredit's and Totalkredit's auctions - Totalkredit A/S

To Nasdaq Copenhagen

3 November 2020

Terms for Nykredit's and Totalkredit's auctions

Thehow many 8ths in a qp total bond offering in connection with the interest rate adjustment of adjustable-rate mortgages (ARMs) and the refinancing of floating-rate loans at Nykredit’s and Totalkredit’s refinancing auctions is expected to amount to approx DKK 27.3bn. The auctions will be conducted in the period from 16th to 20th November 2020.

In the auction period, Nykredit Realkredit A/S will publish the amounts offered in the individual ISINs daily at

nykredit.com/ir

.

Terms for the auctions including a list of the bonds offered, amounts offered and an auction schedule appear from Appendices 1, 2 and 3.

Questions regarding the bond sale as well as technical matters may be addressed to Nykredit Realkredit A/S, Group Treasury, Christian Mauritzen, tel +45 44 55 10 14.

Other questions may be addressed to Corporate Communications, tel +45 44 55 14 50.

Appendix 1: Auction terms

Bonds offered, amounts offered and auction schedule

Appendix 2 and 3 contain auction schedules, lists of bonds offered, expected amounts and settlement dates. The tables show whether Nykredit Realkredit A/S expects the bonds to be offered at auction.

Every morning at 09:00 CET in the auction period, the amounts offered on that particular day in the individual ISINs will be published at nykredit.com/ir under "Debt", where you can find information on the refinancing auctions.

Refinancing principles – ARMs

The Nykredit Group offers fixed-rate non-callable bullet covered bonds for interest rate adjustment of ARMs based on the "refinancing price" principle.

For interest rate adjustment at the refinancing price, the bonds are sold at one or more bond auctions. The price is fixed as a weighted average of the prices obtained at the auctions.

If the Nykredit Group finds that the amount of bonds offered at an auction is not sufficient to obtain a market-consistent price, the refinancing price will instead be based on the Consolidated Reference Price of the bond in question quoted on Nasdaq Copenhagen.

Credit ratings

All auctioned bonds issued through Capital Centre H and G are rated AAA by S&P.

All auctioned bonds issued through Capital Centre J are government-guaranteed and therefore not rated.

Bids

Bids for fixed-rate non-callable bullet covered bonds must be made in terms of amount and price. With respect to bonds maturing within 14 months, bids must be made in prices correct to three decimals. Other bids must be made correct to two decimals.

For all DKK-denominated bonds bids must be made in multiples of DKK 100,000, and for all EUR-denominated bonds in multiples of EUR 10,000.

Story continues

More than one bid may be made in the same ISIN.

Type of auction

Mortgage bonds issued through Capital Centre H will be auctioned through Nasdaq Copenhagen’s auction submarket: 136 – CPH Auctions. Participants are stockbrokers and investors with access to the auction submarket at Nasdaq Copenhagen.

Bonds issued through Capital Centre J will be auctioned through Bloomberg’s auction system AUPD.

Market participants who do not already have access to this system should contact Nykredit Realkredit A/S, Group Treasury, prior to the auctions.

Allotment

As regards bonds for which bids are made in terms of price, bids above the cut-off price will be settled in full, and bids at the cut-off price may be accepted on a pro rata basis.

With respect to bonds for which bids are made in terms of reference rate spread, bids below the cut-off spread will be settled in full, and bids at the cut-off spread may be accepted on a pro rata basis.

All trades concluded will be published through Nasdaq Copenhagen.

Allotment at the auctions will take place as soon as possible, but not later than 10 minutes after closing.

Conditional offering of bonds with interest rate trigger

A condition of the final completion of a sale (allotment) of bonds offered with an interest rate trigger is that the yield-to-maturity of the bonds will not rise by more than 5 percentage points. Reference is made to the Danish Mortgage-Credit Loans and Mortgage-Credit Bonds etc. Act.

Value date

All bonds will be subject to long settlement. The value date of all trades executed at the auctions will be 4th January 2021.

Reverse facility

As the bonds traded will be subject to long settlement, Nykredit Realkredit A/S offers a reverse facility to auction participants whose bids have been accepted and who require the bonds after only two days.

By means of the reverse facility, Nykredit Realkredit A/S offers to sell the allotted bonds subject to the conventional two settlement days and subsequently repurchase them with 4th January 2021 as the value date.

The size of the reverse facility will be determined on an individual basis but cannot exceed the amount allotted to each individual bidder. The reverse facility can be made conditional on the investor providing a corresponding amount of bonds maturing on 1st January 2021.

Reverse facilities will be arranged on an individual basis. Please contact Nykredit Realkredit A/S, Group Treasury, Anders Madsen, tel +45 44 55 11 65.

Reservations regarding auctions

If, contrary to expectations, technical problems should prevent Nykredit Realkredit A/S from conducting an auction through AUPD at Bloomberg or Nasdaq Copenhagen's auction submarket, a stock exchange announcement will be issued containing the practical details of the auction.

Tap sales

Tap sales are made on 17th and 18th November 2020. Bids may be made on these days by contacting Nykredit Realkredit A/S, Group Treasury.

Other terms

The Nykredit Group is not obliged to sell the announced offering, and the offering may furthermore be subject to changes following loan disbursements in the auction period. In addition, the entire or parts of the offering may be postponed, but not later than the second-last business day of this quarter.

On or before the second-last business day of this quarter, it must be ascertained whether the number of purchasers was sufficient for all the covered bonds offered. If a sale of bonds has to be cancelled, the market will be notified immediately by a stock exchange announcement.

Appendix 2: Settlement times and amounts offered for bonds issued through Capital Centre H & G

ISIN

Capital centre

IT / RF

Coupon

Maturity

date

Bids on

Interest rate

trigger

LCR level

Currency

Auction dates

Settlement

Offering

(million)

Start

End

Cut-off

Allotment

DK0009528853

SDO (H)

IT

1

01/01/2022

Price

4.46%

1b

DKK

16/11/2020

18/11/2020

11:30

11:40

5,200

DK0009503195

SDO (H)

RF

1

01/01/2023

Price

-

1b

DKK

Tap-sale

200

DK0009502114

SDO (H)

RF

1

01/01/2024

Price

-

1b

DKK

19/11/2020

20/11/2020

11:30

11:40

4,500

DK0009798480

SDO (H)

RF

2

01/01/2025

Price

-

1b

DKK

Tap-sale

400

DK0009507931

SDO (H)

RF

2

01/01/2026

Price

-

1b

DKK

16/11/2020

20/11/2020

10:30

10:40

13,200

DK0009511297

SDO (H)

RF

1

01/01/2027

Price

-

2a

DKK

Tap-sale

100

DK0009515363

SDO (H)

RF

1

01/01/2028

Price

-

non-level

DKK

Tap-sale

60

DK0009529075

SDO (H)

RF

1

01/01/2031

Price

-

non-level

DKK

Tap-sale

210

DK0009526212

SDO (H)

IT

1

01/07/2021

Price

4.67%

1b

DKK

Tap-sale

85

DK0009525834

RO (G)

RF

1

01/04/2025

Price

-

2a

DKK

Tap-sale

220

DK0009528937

SDO (H)

IT

1

01/01/2022

Price

4.70%

non-level

EUR

18/11/2020

13:00

13:10

220

DK0009515520

SDO (H)

RF

1

01/01/2023

Price

-

non-level

EUR

Tap-sale

10

DK0009519514

SDO (H)

RF

1

01/01/2024

Price

-

non-level

EUR

20/11/2020

13:00

13:10

130

DK0009529232

SDO (H)

RF

1

01/01/2026

Price

-

non-level

EUR

Tap-sale

15

* (IT) Interest rate and refinancing trigger/(RF) Refinancing trigger

** Tap sales are conducted on 17th and 18th November 2020.

Please note that the Nykredit Group is not obliged to sell the announced offering, and the offering may furthermore be subject to changes following loan disbursements in the auction period. In addition, the entire or parts of the offering may be postponed, but not later than the second-last business day of this quarter. The above table exclusively includes ISINs the amount of which exceeds a value equivalent to DKK 50m.

On or before the second-last business day of this quarter, it must be ascertained whether the number of purchasers was sufficient for all the covered bonds offered. The market must be notified hereof immediately by way of a company announcement.

Appendix 3: Settlement times and amounts offered for bonds issued through Capital Centre J

ISIN

Capital centre

IT / RF

Coupon

Maturity date

Bids on

LCR level

Currency

Auction dates

Settlement

Offering

(million)

Start

End

Cut-off

Allotment

DK000951765-8

SDO (J)

RF

1

01/01/2022

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951773-2

SDO (J)

RF

1

01/01/2023

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951781-5

SDO (J)

RF

1

01/01/2024

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951803-7

SDO (J)

RF

1

01/01/2025

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951811-0

SDO (J)

RF

1

01/01/2026

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951838-3

SDO (J)

RF

1

01/01/2027

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951846-6

SDO (J)

RF

1

01/01/2028

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000951854-0

SDO (J)

RF

1

01/01/2029

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000952389-6

SDO (J)

RF

1

01/01/2030

Price

1a

DKK

16/11/2020

11:00

11:10

15

DK000952915-8

SDO (J)

RF

1

01/01/2031

Price

1a

DKK

16/11/2020

11:00

11:10

180

* (RF) Refinancing trigger

Please note that the Nykredit Group is not obliged to sell the announced offering, and the offering may furthermore be subject to changes following loan disbursements in the auction period. In addition, the entire or parts of the offering may be postponed, but not later than the second-last business day of this quarter.

On or before the second-last business day of this quarter, it must be ascertained whether the number of purchasers was sufficient for all the covered bonds offered. The market must be notified hereof immediately by way of a company announcement.

Attachment

Terms for Nykredit and Totalkredit's auctions - 03112020

View comments