Forenet Kredit recommends sale of shares

Nykredit's owner, Forenet Kredit, has today concluded a conditional sales agreement with a group of Dan-ish pension companies headed by PFA and with PensionDanmark, PKA, AP Pension and MP Pension as co-investors. The agreement is subject to approval by the Committee of Representatives of Forenet Kredit and relevant authorities.

The pension companies will buy 10.9% of the shares in Nykredit A/S from Forenet Kredit at a price of DKK 7.5bn, and they will undertake to contribute capital to Nykredit in future, should such need arise.


The pension companies have also entered into agreements with Industriens Fond and Østifterne f.m.b.a to buy part of the shares held by these minority shareholders of Nykredit A/S. These agreements are conditional on the completion of Forenet Kredit's sale of shares to the pension companies and will bring the pension companies' total investment up to 16.9% of the shares in Nykredit A/S at a total price of DKK 11.6bn.


If the transaction is completed, it will constitute the largest unlisted equity investment by institutional investors in Denmark seen so far.


Backed by the Board of Directors and the Group Executive Board of Nykredit A/S, the Board of Directors of Forenet Kredit will recommend that the Committee of Representatives of Forenet Kredit approve the transaction at their meeting on 23 November. If the transaction is approved, the IPO preparations will be discontinued.


Michael Rasmussen, Group Chief Executive of Nykredit A/S, says:

– The solution marks a major milestone for the Group and our efforts of the past four years. We have gained much more control of costs and earnings, which is evident from our financial statements for Q3/2017. This solution will stabilise Nykredit's future capital structure, And the Group will have rock solid positions in three essential areas: costs, earnings and capital. We must maintain our focus on efficiency and profitability, but with this solution, we can shift yet more of our focus towards strengthening the Group's competitiveness. We want to be able to award more KundeKroner bonuses to more customers and concentrate on generating growth, attracting more customers and not least ensuring higher customer satisfaction. 


See Stock Exchange Announcement Recommendation of sale of shares to Danish pension companies

Read about: Sale of minority shareholding to consortium of Danish pension companies

Read about: Nykredit's capital requirements in different scenarios 

See Q3 Interim Report 2017


KundeKroner concept expanded

Totalkredit's more than 700,000 personal mortgage customers have today been guaranteed annual KundeKroner bonuses of DKK 1,000 per million kroner borrowed. This guarantee applies up to and including Q2/2019.


If Nykredit is able to raise equity as implied by the above solution, the Group will be able to raise distributions under and expand the concept. Totalkredit's personal customers will receive a higher annual amount than the DKK 1,000 per million kroner borrowed, and this will be guaranteed up to end-2019. All the Group's business customers having mortgage loans will be guaranteed the same amounts in the same period. For loans exceeding DKK 20m, customers will only receive administration margin discounts for the first DKK 20m of the debt outstanding.