Today Realkredit Danmark launches a new type of loan – RenteDyk™

Realkredit Danmark launches a new type of loan under the registered trademark RenteDyk™. RenteDyk™ is a floating-rate bond loan with automated adjustment to lower interest rates allowing loan coupons to fall, however, never increase. Loans are offered with a term to maturity of up to 30 years and may be disbursed in either Danish Kroner or Euro. At the launch RenteDyk™ coupons are 6.07% per annum in Danish Kroner and 5.71% per annum in Euro, respectively. The coupons apply until 1 April 2008. From hereon coupons may only fall.

Mortgage covered bonds will be issued for the funding of RenteDyk™. Bonds are floating-rate, callable at 105 and coupons are fixed semi-annually with effect from 1 April and 1 October. The coupon is fixed on the basis of a reference rate plus a margin. The reference rate is the 10-year swap rate in Danish Kroner or Euro, respectively. Based on current market conditions Realkredit Danmark has fixed the margin at 1.20% per annum for loans in Danish Kroner and 1.00% per annum for loans in Euro. Bond series opened at the launch will mature in 2039.

If, at a coupon fixing, the reference rate has fallen since the last fixing, at which the coupon was adjusted, the coupon is lowered accordingly. If the reference rate is unchanged or has increased, the coupon remains unchanged. The coupon cannot increase during the term of the loan. In that way RenteDyk™ hosts the feature of an embedded refinancing to lower interest rates regardless of the volume of the fall in interest rates at the time of the fixing. The refinancing takes place automatically and at no costs to the borrower, thus, with RenteDyk™ refinancing to lower interest rates is feasible also for at low loan balances.

RenteDyk™ is offered as annuity loans and as annuity loans with an option for interest only periods of up to 10 years. For the funding of the two types of RenteDyk™ four new bond series are applied named 40S and 41S for the funding of loans in Danish Kroner and 40Q and 41Q for the funding of loans in Euro, respectively.

The Executive Board

For further information, please contact Sven Holm, Chairman of the Executive Board and Chief Executive Officer, on tel. +45 45 13 20 81.