Funding

Nykredit's bond issuance is dominated by mortgage bonds (covered bonds). The group has also issued hybrid core capital (Tier 1) for Nykredit Realkredit A/S and subordinated loan capital (Tier 2) for Nykredit Realkredit A/S and Totalkredit A/S. Furthermore, Nykredit Bank has issued bonds as part of the Bank's funding programme.

Nykredit is the largest issuer of Danish mortgage bonds and one of the largest private bond issuers in Europe. Nykredit had a total outstanding amount of mortgage bonds of EUR 157bn and a market share in the Danish mortgage banking market of around 39% at end-2009.

Nykredit aims to build large, liquid bond series within the framework of borrowers' product preferences, the purpose being to obtain the best pricing of the bonds for the benefit of Nykredit’s customers.