Announcement from the Danish Transport, Construction and Housing Authority

Conversion of KommuneKredit loans in social housing

The Danish Transport, Construction and Housing Authority announces that a conversion of KommuneKredit loans in social housing will be carried out.

The conversion will include fixed-rate KommuneKredit loans and will be executed by injunction to the affected municipalities.

A total volume of approximately DKK 3.6 billion will be converted. Half of these loans (DKK 1.8 billion) have a fixed coupon rate of 3 per cent and approximately one third (DKK 1.2 billion) have a fixed coupon rate of 2 per cent. The remainder loans have a fixed coupon rate of 1.5 per cent.

Following the conversion, the KommuneKredit loans will be rescheduled as adjustable-rate loans in 10-year interest rate resets. No changes in the terms of maturity are planned.

Moreover, the state expects to make an offer for the bonds issued by KommuneKredit related to the conversion.

Yours sincerely,

Lise Heinesen
Head of Division

Vedhæftede filer:

Pressemeddelelse 2018 2 kv. ENG.pdf