Fact sheet Fixed-rate callables

Transcription

1 Fact sheet Fixed-rate callables June 2007 Investor Relations FIXED-RATE CALLABLE ANNUITY BONDS In brief Nykredit offers a range of long-term fixed-rate callable annuity bonds with varying maturities, coupons and outstanding amounts. The callable annuity bonds are used to fund fixed-rate callable annuity loans granted by Nykredit and Totalkredit based on their joint bond issuance activities. This fact sheet describes the general characteristics of Nykredit s callable annuity bonds. Data on the individual bond series are available on the Nykredit bond data pages and in the final bond terms at nykredit.com/ir. Capital centre The bonds open for issuance are issued out of Nykredit's Capital Centre D. Furthermore, a number of bonds (closed for issuance) are issued out of Nykredit s Capital Centre C and a few bonds (open for issuance) out of Nykredit In General. Ratings Capital centre 1 Rating 2 Bonds: open/closed for issuance Nykredit's Capital Centre D Aaa Open and closed 3 Nykredit's Capital Centre C Aa1 Closed Nykredit In General Aa1 Closed Totalkredit's Capital Centre C Aaa Closed 1) In addition, a few closed bond series with limited outstanding amounts are issued out of non-rated capital centres. 2) Moody s. 3) The individual bond series can be closed temporarily if the official closing price is above par, see below for further information. Issuance Long-term callable bonds are issued on a daily tap basis in series with a three-year opening period, thereby building large, liquid bond series. The tap issues are used to meet the current funding need, which is a consequence of the Danish statutory balance principle. The bonds are open for issuance from 19 January 2005 or later until 31 August 2008 provided that: - Prices are below par (if official prices are above par, the bond will close for issuance on the following day). - The coupon rate is at or above the official minimum interest rate which is currently 4%. The bonds are issued on tap in book entry form and registered with VP Securities Services. page 1

2 Currency Maturities Indexation Payment dates Call Cash flow The bonds are denominated in Danish kroner (DKK). The bonds are issued in ISIN codes with 10-year, 20-year or 30-year maturities. The bonds carry a fixed nominal coupon rate and are not index-linked. The quarterly payment dates of the bonds are: 1 January, 1 April, 1 July and 1 October. The bonds are callable at par (100) on the payment dates. The callable annuity bonds are used to fund fixed-rate callable annuity loans with or without an interest-only option in Nykredit and Totalkredit based on their joint bond issuance activities. The amortisation profile of both bond types is based on the loans behind the bonds being amortised according to either the annuity principle alone or the annuity principle with an option on one or more interest-only periods totalling a maximum of ten years during the maturity of the bond. The individual mortgage cash flows add to the accumulated cash flow of the bond during the opening period depending on general activity and interest rate levels, resulting in an annuity bond or an interest-only hybrid bond. Due to the callability of the bonds 1, prepayments will affect the cash flow over the life of the mortgage bond and could in effect result in a shorter effective duration. Nykredit publishes cash flows for all open and closed annuity series with and without interest-only options four times a year on the Nykredit bond data pages at nykredit.com/ir. The cash flow information has been broken down into principal payments and interest payable by the debtors excluding administration margin. For further information, see the Nykredit bond data pages on Nykredit s website. Interest-only options The bonds are issued with or without an interest-only option depending on the loan they fund. This is due to the fact, that the amortisation profile of both bonds is based on the loans funded by the bonds being amortised according to either the annuity principle alone or the annuity principle with an option on one or more interest-only periods up to a maximum of 10 years during the maturity of the bond. Interest days Prospectus Trading The number of interest days is calculated according to the Actual/Actual convention. The prospectuses on the bond series and the final bond terms are available at nykredit.com/ir under Documentation. The terms of Danish mortgage bonds are to a wide extent governed by the rules of the Danish Mortgage Credit Act and Danish legislation in general. The bonds are quoted on the Copenhagen Stock Exchange. Trading takes place in clean prices. 1 See "The Danish mortgage bond market". page 2

3 Security Nykredit bond data Danish mortgage bonds meet the requirements of highly secure bonds defined in article 22.4 of the UCITS directive. Compliance with UCITS 22.4 implies that the risk weighting of Danish mortgage bonds in some countries will be reduced to 10%. Individual bond data by ISIN code are available on the Nykredit bond data pages at nykredit.com/ir. The data include: - basic bond data - debtor distribution - preliminary prepayments - drawings, ie final prepayments and ordinary repayments - cash flows Other fact sheets The fact sheet series currently covers the following bonds: - Fixed-rate non-callable bullet bonds - Capped floating-rate annuity bonds Furthermore, a number of specific fact sheets on floating-rate bonds are available. All fact sheets are available at nykredit.com/ir page 3

4 DISCLAIMER The information in this material/on this website (hereinafter the Information ) has been compiled by Nykredit Realkredit A/S (hereinafter Nykredit ) for informational purposes only. The Information is solely based on information accessible to the public. The Information is believed to be reliable. However, Nykredit does not guarantee the timeliness, sequence, accuracy, correctness, adequacy, or completeness of the Information or opinions contained therein. The Information does not constitute an offer to sell or the solicitation of an offer to buy any securities metioned in the Information. Nykredit makes no representation and gives no advice concerning the appropriate legal treatment, regulatory treatment, accounting treatment or possible tax consequences in connection with an investment in securities mentioned in the Information. Before proceeding with any such investment investors should determine, without reliance upon Nykredit, the economic risk and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences, of such an investment and that investors are able to assume these risks. Investors should conduct their own analysis, using such assumptions as they deem appropriate in making an investment decision. Nykredit does not accept any liability for any loss, howsoever arising, directly or indirectly from the issue of the Information or its contents including transactions made based on information therein. The Information contains certain tables and other statistical analyses (the Statistical Information ) which have been prepared in reliance upon information accessible to the public. Numerous assumptions were used in preparing the Statistical Information, which may not be reflected herein. As such, no assurance can be given as to the Statistical Information s accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and or the assumptions upon which they are based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. Assessments and recommendations, if any, made in the Information may involve substantial risks. Such risks, including a sensitivity analysis based on relevant assumptions, have been described in the Information. Nykredit and/or other companies of the Nykredit Group are financial institutions and banks that trade in securities. Any company in the Nykredit Group may buy, sell or hold positions in the securities mentioned in the Information, just as these companies may be involved in activities involving companies mentioned herein. The Information is being directed at you solely in your capacity as a relevant person for your information and may not be reproduced or redistributed or passed on to any other person or published in whole or in part, for any purpose, without the prior written consent of Nykredit. Relevant persons are persons who have profesionel experience in matters relating to investments in securities mentioned in the Information and to whom the Information may be lawfully communicated. The Information may not be acted on or relied on by persons who are not relevant persons. page 4

5 Nykredit Investor Relations Internet Bloomberg Pernille Lohmann, Investor Relations Manager Tel nykredit.com/ir Information: NYKREDIT <go> Pricing NYKR <go> Bond specific information: preticker NYKRE e.g. NYKRE5_35 <corp> <go> Information, all bonds: NYKRE <corp> <go> preticker TOKRE e.g. TOKRE5_35 <corp> <go> Information, all bonds: TOKRE <corp> <go> Reuters Pricing NYKRED12 and NYKRED17 Bond specific information according to ISIN-code page 5 Nykredit - Kalvebod Brygge 1-3 DK-1780 Copenhagen V - Tel Fax