Danske Hypotek ABOn 26th June, 2017 Danske Hypotek was granted a license by Finansinspektionen (SFSA) to conduct financing business as a credit market company and on the same date the company was granted a license to issue covered bonds under the Swedish Covered Bonds Act.
The Issuer’s operations are under the supervision of the SFSA.
The Issuer’s principal activity is to acquire Swedish mortgages from Danske Bank A/S Swedish Branch, which are secured by security over Swedish real property (fastigheter), site leasehold rights (tomträtter) and tenant-ownership rights (bostadsrätter) and to fund such activity with the continuous issuance of covered bonds in the Swedish benchmark-market and covered bonds in the international capital market (under two separate programmes). The acquired mortgages will be included in the Issuer Cover Pool and must fully or in part comply with the requirements under the Covered Bonds Act. The Issuer may also hold Supplemental Assets and Public Credits can be used as supplemental security in accordance with the Covered Bonds Act.
Danske Hypotek will, as Danske Bank A/S’s outstanding covered bonds backed by Swedish mortgage loans mature, gradually seek to acquire such mortgage loans for the purpose of including them in its Cover Pool. During a transitional period the acquisition of mortgage loans will occur on a continuous basis and by bulk acquisitions. Thereafter, the acquisitions are expected to mainly occur on a continuous basis, as the Swedish Branch originates new mortgage customers in Sweden.
Initially, Danske Hypotek intends to acquire residential mortgage loans to private individuals (related to the Swedish Branch’s, personal banking portfolio). In a subsequent phase, Danske Hypotek intends to acquire mortgage loans to corporate owners of residential multi-family properties (related to the Swedish Branch’s business banking portfolio).
Danske Bank A/S, Swedish BranchThe history of Danske Bank’s operations in Sweden dates back to 1997 and today the bank is the fifth-largest in the country. With 1,300 employees the bank serves personal and business customers and large institutional clients from 30 local branches and eight regional finance centers. With a total market share of 5.2%, Danske Bank in Sweden continues to attract new customers through strategic partnerships with organizations like Saco and TCO which comprises 23 and 14 unions, respectively and together they have more than 2 million union members.
Danske Bank A/SDanske Bank A/S was founded in Denmark and registered on 5 October 1871 and has, through the years, merged with a number of financial institutions.
Danske Bank A/S is conducting its lending operations in Sweden through the Swedish Branch. The structure of the Danske Bank Group is set out in the structure chart below.
The Danske Bank Group is the leading financial service provider in Denmark measured by total working capital, and it is one of the largest banks in the Nordic region measured by total assets as at 31 December 2016. The Danske Bank Group also has significant operations in its other main markets, Sweden, Norway and Finland. The Danske Bank Group offers its customers a wide range of services that, depending on the market, include services in banking, mortgage finance, financing, trading, investing, life insurance, asset management and real estate agency. As at 31 December 2016, the Danske Bank Group’s total assets amounted to DKK 3,484 billion (EUR 469 billion) and the Danske Bank Group employed 19,300 full-time equivalent employees. As at the same date, the Danske Bank Group had approximately 3.4 million customers and approximately 2.2 million customers used the Danske Bank Group online services. The Danske Bank Group had 272 branches as at 31 December 2016. From 2016, the Danske Bank Group has five business units, (i) a Non-core unit and Other Activities, (ii) Personal Banking, (iii) Business Banking, Corporates & Institutions, (iv) Wealth Management, and (v) Northern Ireland. The Wealth Management unit includes Danica Pension, Danske Capital and parts of the private banking operations.
For more information on Danske Bank group