News Column

Determination of interest rate triggers for 1Y bullet covered bonds

May 28, 2014

On 1 April this year, new rules on the refinancing of Danish covered bonds entered into force. Under the new rules, the maturity of 1Y bullet covered bonds that fund adjustable-rate mortgage (ARM) loans with annual interest rate adjustment must be extended if the yield-to-maturity of the bonds will be more than 5 percentage points higher than at the last refinancing (interest rate trigger), or there are insufficient buyers for the bonds (failed refinancing trigger). The Nykredit Group has just finished its bond sales in connection with the refinancing of ARMs with 1Y funding with interest rate adjustment as at 1 July, and has on that basis determined the interest rate triggers for the bonds which can trigger maturity extension at next year's refinancing. Interest rate triggers for 1Y bullet covered bonds: ----------------------------------- Interest rate trigger ISIN ----------------------------------- DK0009794810 5.27% ----------------------------------- Detailed information on interest rate triggers is available at nykredit.com. Information on bond sales is available at nykredit.com/ir. Enquiries may be addressed to Lars Mossing Madsen, Group Treasury, tel +45 44 55 11 66, or Trine Ahrenkiel, Head of Corporate Communications, tel +45 44 55 14 70. Copyright 2014 OMX AB (publ).


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Source: OMX


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