Nykredit sees VP as an integrated part of the infrastructure

Nykredit is one of Europe’s largest covered bond issuers and a large issuer on VP’s platform. Nykredit wants to participate in the further development of the VP infrastructure as Nykredit aims to keep issuing covered bonds for the long term at VP. Both parties see a competitive infrastructure as a long term driver for the Nordic capital market.

Nykredit uses VP as a main provider of infrastructure services when it comes to issuance of covered bonds. The aim of the relationship is to secure an effective and commercially competitive infrastructure for the issuance, clearing and settlement of covered bonds. The intention from both parties is to participate in the development of technology and business processes to secure capacity, costs and long term competitive strength.

“We already have a strong relationship with VP, and we want to gain even further efficiency in light of a rapid changing environment”, says Henrik Hjortshøj-Nielsen, Executive Vice President, Head of Group Treasury at Nykredit. “We value a robust and reliable infrastructure for Danish covered bonds, and we do see a growing need to develop an even more efficient infrastructure in the future. The deep understanding of business impacts is vital, and we want to participate in projects with VP to realize these benefits for us and the Nordic market participants on a longer term.”

The relation facilitates knowledge transfer and joint development discussions. The Nordic countries have strong traditions for dematerialization and segregated accounts and hold a strong and competitive efficiency. Anyhow, the CSDs need to adapt the business model to new European standards and platforms. VP is the first CSD in the Nordics to join T2S in both Euro and DKK opening up for more international demand and competition related to the Nordic capital market.

“Nykredit is a leading issuer and an extremely important and valued partner to VP. This relationship is a strong support to the innovation and long term sustainability of a Nordic infrastructure”, says Henrik Ohlsen, Client & Relations Director at VP. “This is not only good news for VP. All market participants have strong interest in an infrastructure close by to support a Nordic capital market. Nykredit see the need to move on and take part in strengthening our infrastructure in light of closer European integration.”

Besides the issuing in DKK Nykredit has in 2017 made several large issues in EUR through VP SECURITIES:

• March EUR 500.000.000 – Senior Resolution Note
• June EUR 300.000.000 – Senior Resolution Note
• September EUR 500.000.000 – Covered Bond
• September EUR 200.000.000 - Private Label