Nykredit Realkredit issues Senior Resolution Notes through VP Securities

Nykredit Realkredit, the largest Danish issuer of Covered Bonds, has successfully issued two unsecured bonds at VP SECURITIES (VP). The bonds are structured as a new type of unsecured debt - Senior Resolution Notes.


The background to the bond issue is the Danish Debt Buffer Requirements for non-deposit-taking Mortgage Banks, giving protection for more senior creditors in the context of the Danish implementation of the EU Bank Recovery and Resolution Directive.

Both bonds are investment grade with a benchmark value of EUR 500 million and a maturity of 3 years and 5 years, respectively. They are both part of the general funding of Nykredit and the company expects to issue an additional EUR 1 billion in the coming 12 to 18 months.

The bonds have been distributed to a large number of domestic and European investors and will be fully available for settlement on the TARGET2-Securities (T2S) platform when VP migrates to T2S on 12 September.

"We are very pleased that Nykredit Realkredit has decided to issue this type of bond through VP, and it is satisfying to work closely with one of the leading issuers in Europe," says Chief Commercial Officer Birger Schmidt, VP SECURITIES.

The successful issuance by Nykredit Realkredit proves that the Danish financial community and VP are at the forefront of implementing T2S. The official launch of T2S is set for 12 September and the implementation is moving forward as planned. However, issuers such as Nykredit Realkredit are already benefiting from T2S.

The issuance of the EUR 500 million Senior Resolution Notes is being handled as a fully dematerialised issuance, in accordance with the CSD Regulation.

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