Terms for Nykredit's and Totalkredit's auctions - Totalkredit A/S

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Terms for Nykredit's and Totalkredit's auctions

The 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 amounts to approx. DKK 37.3bn. The auctions will be conducted in the period from 20th to 24th November 2023.

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 and 2.

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 contains auction schedules, lists of bonds offered, expected amounts and settlement dates.

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.

Refinancing principles – floating-rate loans
Floating-rate loans are refinanced at two stand-alone auctions.

• ISIN DK000954373-8 is non-callable.
  The mortgage bond is offered and settled at a price of 100.20.
  Based on the offer price, bids must be made in terms of the reference rate spread used for the regular coupon fixing.
  
  
• ISIN DK000954411-6 is non-callable.
  The mortgage bond is offered and settled at a price of 100.20.
  Based on the offer price, bids must be made in terms of the reference rate spread used for the regular coupon fixing.
  
  

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

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.

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.

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 at auction will be subject to long settlement. The value date of all trades executed at the auctions will be 2nd January 2024.

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 trading 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 2nd January 2024 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 2024.

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

Reservations regarding auctions
If, contrary to expectations, technical problems should prevent Nykredit Realkredit A/S from conducting an auction through 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 22nd and 23rd November 2023. 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 and 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

DK0009798480

SDO (H)

RF

2

01/01/2025

Price

-

1b

DKK

23/11/2023

11:30

11:40

850

DK0009507931

SDO (H)

RF

2

01/01/2026

Price

-

1b

DKK

23/11/2023

13:00

13:10

1,400

DK0009511297

SDO (H)

RF

1

01/01/2027

Price

-

1b

DKK

20/11/2023

22/11/2023

13:00

13:10

6,900

DK0009515363

SDO (H)

RF

1

01/01/2028

Price

-

1b

DKK

Tapsale**

300

DK0009519357

SDO (H)

RF

1

01/01/2029

Price

-

1b

DKK

20/11/2023

22/11/2023

10:30

10:40

5,000

DK0009541286

SDO (H)

RF

1

01/01/2034

Price

-

non-level

DKK

Tapsale**

150

DK0009540395

SDO (H)

IT / RF*

1

01/04/2024

Price

-

1b

DKK

20/11/2023

22/11/2023

10:30

10:40

600

DK0009543654

SDO (H)

IT / RF*

1

01/04/2025

Price

-

1b

DKK

20/11/2023

11:30

11:40

5,800

DK0009542334

SDO (H)

RF

1

01/07/2028

Price

-

1b

DKK

24/11/2023

10:30

10:40

700

DK0009542417

SDO (H)

IT / RF*

1

01/01/2025

Price

8.32%

non-level

EUR

21/11/2023

11:30

11:40

150

DK0009529232

SDO (H)

RF

1

01/01/2026

Price

-

non-level

EUR

Tapsale**

8

DK0009533424

SDO (H)

RF

1

01/01/2027

Price

-

non-level

EUR

21/11/2023

13:00

13:10

60

DK0009543738

SDO (H)

RF

Adjustable

01/01/2027

Yield

-

1b

DKK

24/11/2023

11:30

11:40

9,500

DK0009544116

SDO (H)

RF

Adjustable

01/10/2026

Yield

-

1b

EUR

24/11/2023

13:00

13:10

600

*        (IT) Interest rate and refinancing trigger / (RF) Refinancing trigger
**        Tap sales are conducted on 22nd and 23^rd November 2023.

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

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