Announcement from the Danish Transport, Construction and Housing AuthorityIt is hereby announced that a conversion will be carried out of state subsidised construction loans as well as renovation loans subsidised by Landsbyggefonden.
The conversion will include fixed-rate mortgage loans and will be executed by injunction to the affected social housing organisations. A total volume of approximately DKK 8.0 billion will be converted. The majority of these mortgage loans (DKK 7.0 billion) have a fixed coupon rate of 3 per cent; the remainder (DKK 1.0 billion) have a fixed coupon rate between 1 and 2.5 per cent. Following the conversion, the mortgage loans will be rescheduled as state guaranteed adjustable-rate loans in 10-year interest rate resets. No changes in the terms of maturity are expected. Yours sincerely
Lise Heinesen
Head of Division
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