Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2021)
29 slides from Nordea Bank Abp's debt investor presentation, 2021
Slide 1: Nordea Eiendomskreditt Covered Bonds
Nordea Eiendomskreditt Covered Bonds Q3 2021 Debt investor presentation Q3 2021 Debt investor presentation
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 9 4. Covered bond framework 13 5. Green bond framework and Green covered bonds 15 6. Macroeconomy 22 7. Further information 27 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q3 2021 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered bond issuers with complementary roles Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages prim
Slide 5: Nordea Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q3 2021 • A 100% owned subsidiary of Nordea Bank Abp • The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds • Loans are originated by Nordea Eiendomskreditt (NE) • Collater
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q3 2021 Cover pool summary Pool notional NOK 212.6bn Outstanding Covered Bonds NOK 92.3bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100% r
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q3 2021 Cover pool balance by loan category Cover pool balance by region Summer houses 3% Tenant owner units West 27% 19.8% South 5.3% East North 61.8% 4.6% Single family houses Mid 8.5% 70% 8
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan to Value (LTV)
Loan to Value (LTV) Each loan is reported in the highest bucket Q3 2021 Weighted Average LTV – Unindexed 49.8% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 57 765.5 27.2% >40 - <=50 % 38 969.6 18.3% >50 - <=60 % 48 538.7 22.8% >60 - <=70 % 44 149.5 20.8% >70 - <=80 % 23 197.9 10.9% Tot
Slide 11: Loan structure
Loan structure Q3 2021 Rate type Repayment 100.0% 100% 90.0% 90% 80.0% 80% 70.0% 54% 70% 60% 61% 61% 62% 63% 60.0% 60% 50.0% 98% 99% 98% 98% 98% 98% 50% 40.0% 40% 30.0% 30% 46% 20.0% 20% 40% 39% 39% 38% 37% 10.0% 2% 1% 2% 2% 2% 2% 10% 0.0% 0% 20Q2 20Q3 20Q4 21Q1 21Q2 21Q3 20Q2 20Q3 20Q4 21Q1 21Q2 21
Slide 12: Underwriting criteria
Underwriting criteria Q3 2021 Regulation • Mortgages is regulated in "Boliglånsforskriften" which set requirements on borrowers' debt to income, rent sensitivity, instalments and loan to value. Affordability • Customers ability to service its commitment out of its cash flow/income is critical • Repa
Slide 13: 4. Covered bond framework
4. Covered bond framework alge fee: tly Nordea
Slide 14: Norwegian covered bond framework
Norwegian covered bond framework Q3 2021 • Legal framework • Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven) • Registration and independent inspector • A mortgage credit institution shall for each cover pool establish a register of loans, interest rate contr
Slide 15: 5. Green bond framework and Green covered bonds
5. Green bond framework and Green covered bonds 15
Slide 16: Green bond framework update – widened scope to enable issuance of covered bonds
Green bond framework update – widened scope to enable issuance of covered bonds Highlights • Nordea’s green bond framework is updated annually, most recently in October 2021 • The major amendment is the inclusion of covered bonds in the framework, which enables all Nordea mortgage credit institution
Slide 17: Nordea green bond framework
Nordea green bond framework Green covered bond asset categories • The categories of green assets listed in the table have been identified by Nordea GBP category Project types as aiming to increase the positive or reduce the negative impact of residential buildings on the environment while encouragin
Slide 18: Nordea green bond framework
Nordea green bond framework Selection and evaluation of green covered bond assets Selection process • The Nordea covered bond Issuing entity will complete the specific process (outlined here) when selecting and evaluating financing within the green covered Nordea chooses potential green assets from
Slide 19: Nordea Eiendomskreditt green mortgage assets
Nordea Eiendomskreditt green mortgage assets Selection and evaluation of Norwegian green covered bond assets • Green covered bond asset categories make reference to the TSC as defined by the EU Taxonomy delegated acts of the EU Commission and the associated annexes Nordea Eiendomskreditt • For build
Slide 20: Nordea Eiendomskreditt green mortgage assets
Nordea Eiendomskreditt green mortgage assets NOK 8.6bn of green asset as per Q3 2021 • By currently only selecting EPC A and B Nordea ensures only the most energy efficient buildings are included • 100% of green assets included in Nordea Eiendomskreditt’s green covered bond asset portfolio are align
Slide 21: Reporting and verification of green mortgage assets
Reporting and verification of green mortgage assets Reporting • Nordea will annually publish on its website a Green bond report • Nordea will provide information on its green covered bonds and the green covered bond assets in the yearly green bond report. Allocation and impact reporting will be pres
Slide 22: 6. Macroeconomy
6. Macroeconomy 22
Slide 23: Nordic economies – resilient economies back on track
Nordic economies – resilient economies back on track GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook September 2021 • After the dramatic setback in 2020 due to the COVID-19 pandemic, the Country 2020 2021E 2022E Nordic economies have almost fully recovered • Vaccines
Slide 24: Nordic rates – Nordics well equipped to handle long-term consequences of COVID-19
Nordic rates – Nordics well equipped to handle long-term consequences of COVID-19 Policy rates Public balance and debt, % of GDP, 2021E Comments • Norges Bank increased its key rate in September this year, with a second increase likely in December. Policy rates in the euro area, Denmark and Sweden a
Slide 25: Households remain resilient
Households remain resilient Household debt Household savings Comments • Household savings have increased dramatically during the crisis, largely due to of a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as restrictions are l
Slide 26: Nordic housing markets heat up
Nordic housing markets heat up Housing prices Households’ credit growth Comments • Contrary to expectations, house prices have increased to record-high levels in all the Nordic countries during the crisis. This is not least because of unprecedented expansionary fiscal and monetary policy in support
Slide 27: 7. Further information
7. Further information Habe foe: tly Nordea
Slide 28: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q3 2021 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010758931 NOK 4 615 2022-06-15 1,08 NO0010759632 NOK 13 711 2022-06-15 FRN NO0010819717 NOK 18 550 2023-06-21 FRN NO0010843626 NOK 18 900 2024-06-19 FRN No0010873334 NOK 11 400 2025-03-19
Slide 29: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 738 66 17 24 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury Ola Bladholm Morten Keil Chief Treasury Ma
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