Terms for Nykredit and Totalkredit's auctions

To   Nasdaq Copenhagen
      
      

2 May 2018

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 the Nykredit Group's refinancing auctions will amount to approx. DKK 48.6bn. The auctions will be conducted in the period from 22 May to 25 May 2018.

In the auction period, Nykredit 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, Lars Mossing Madsen,
tel +45 44 55 11 66.

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 an auction schedule, a list of bonds offered, expected amounts and settlement dates. The table shows 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.

Refinancing principles – ARMs
Nykredit and Totalkredit offer 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 average price of the bond in question quoted on Nasdaq Copenhagen.

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


The bonds are 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

Bond ratings appear from nykredit.com/ir.

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.

Bids for floating-rate bonds must be made in terms of amount and reference rate spread. Bids in terms of the spread 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
The auctions will be conducted through Nasdaq Copenhagen. The 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.

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 does not rise by more than 5 percentage points. Reference is made to the Danish Mortgage-Credit Loans and Mortgage-Credit Bonds Act etc.

Value date
All bonds will be subject to long settlement. The value date of all trades executed at the auctions will be 2 July 2018.

Auction submarket

Nasdaq Copenhagen: 136 – CPH Auctions

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 2 July 2018 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 1 July 2018.

Reverse facilities will be arranged on an individual basis. Please contact Nykredit Realkredit A/S, Group Treasury, Kim Brodersen, tel +45 44 55 24 21.

Reservations regarding auctions through the auction submarket

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

Tap sales

Tap sales are made on the 24 May. Bid may be made on the day by contacting Nykredit Realkredit A/S, Group Treasury, Lars Mossing Madsen, tel  +45 44 55 11 66, Christian Mauritzen, tel +45 44 55 10 14, Emil Schmidt Andreasen på tlf. +45 44 55 22 72 or Kim Brodersen, tel +45 44 55 24 21.

Other terms

Nykredit Realkredit A/S reserves the right not to sell the full offering announced. Amounts may be changed as a result of disbursement in the auction period.

Appendix 2: Settlement times and amounts offered

In the auction period, Nykredit will publish the amounts offered in the individual ISINs daily at nykredit.com/ir.

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

It should be noted that the above table exclusively includes tap sales in the ISINs the amount of which exceeds a value equivalent to DKK 50m.

Attachment