Issuance of covered bonds (SDO) and mortgage bonds (RO)
Since 2008, DLR has exclusively issued covered bonds for the funding of mortgage loans. DLR stopped issuing mortgage bonds for purposes of funding mortgage loans at the beginning of 2008 in connection with the transition to SDO funding and the opening of a new Capital Center B for the issuance of SDOs. DLR’s ROs are issued out of the “General Capital Center”, and in connection with the transition to SDO funding, the bonds were “grandfathered” so they could maintain the same low risk weighting as the SDOs.
Pursuant to section 15 of the Danish Mortgage-Credit Loans and Mortgage-Credit Bonds etc. Act, DLR can issue bonds in the form of senior secured bonds (SSBs) for the purpose of meeting the requirement for supplementary collateral for the issued SDOs and increasing overcollateralisation in a capital centre, including for rating purposes. Since 2012, DLR has issued SSBs out of Capital Centre B.