Ringkjøbing Landbobank and BRFkredit are entering into an agreement on joint funding of the bank’s real estate loans with registered mortgages in real property. The agreement will enable Ringkjøbing Landbobank to provide covered bond financing for the bank’s real estate loans to private customers with a registered mortgage in owner-occupied residences and second homes within the legislation’s rules on joint funding.
The agreement will secure Ringkjøbing Landbobank competitive access to long-term funding of real estate loans provided by the bank via BRFkredit’s AAA-rated covered bond issues.
The joint funding model has been approved in principle by the Danish Financial Supervisory Authority.
An agreement is also being entered into on the provision of mortgage loans for commercial properties.
The agreements will not result in any changes to the partnership on the mediation of mortgage loans which Ringkjøbing Landbobank has with Totalkredit/Nykredit and DLR Kredit, but they will secure Ringkjøbing Landbobank’s customers even more competitive products and options.
Yours sincerely,
Ringkjøbing Landbobank
John Fisker
