Ship mortgage bonds are available through most Danish banks and broker firms. Danish Ship Finance does not sell its bonds directly to private or other investors.
When issuing new bonds, Danish Ship Finance sells its bonds in large quantities to a bank or a broker firm, which then resells the bonds in the requested quantities to investors.
Danish Ship Finance is under no obligation to trade with or provide buying or selling prices to third parties.
Danish Ship Finance primarily issues bonds in the Danish market, primarily bullet loan bonds. These loans are characterised by the borrower only paying interest during the life of the bond loan, while the principal falls due for repayment on the date of expiry. Furthermore, the bond cannot usually be redeemed before the expiry date.
Bond types and depositing of bonds
Bonds issued in Capital Center A. Capital Center A was established 28 March 2019.
Bonds issued before 1 January 2008. By definition, the bonds are covered bonds (as defined by the CRD) until maturity, even though there is no requirement for regular compliance with loan values.
Ship mortgage bonds
Bonds issued after 1 January 2008 which do not qualify for the covered bond designation. All bonds issued by Danish Ship Finance are on the European Commission’s list of bonds meeting the gilt-edged requirements of Article 52(4) of the UCITS directive (the “Investment Directive”).
Danish Ship Finance offers to store bonds issued by the company if such bonds are registered with VP Securities (“securities register”).
Danske Bank A/S, New issues/Custody, phone no. +45 45 14 38 60. Danske Bank A/S handles the management of Danish Ship Finance's securities registers. The registers are kept separately from Danske Bank A/S’s other activities.
The bondholders will not be charged any fee for the securities registers.
To a large extent, Danish Ship Finance bases its lending operations on its ability and opportunities to attract stable and long-term loan capital. Danish Ship Finance obtains its funding primarily through the issuance of non-callable bonds. This provides some form of security as Danish Ship Finance knows when the bonds fall due for repayment.
Danish Ship Finance raises funding well in advance of actual loan disbursements. Typically, the liquidity requirement is covered before or around the time when the loan offer is submitted to reduce dependence on prevailing market conditions. Proceeds from the funding are invested exclusively in high-security liquid assets. Investment in the specific asset types and counterparties are subject to Danish Ship Finance's policies for financial risks and credit and counterparty risks.
Open series are bond series in which Danish Ship Finance regularly issues new bonds. Bonds issued in the same series share the same securities ID code, maturity, payment date(s) and nominal interest rate.
If a bond series is closed, no further issuance will be made. However, existing bonds in the relevant series in the market will be available for market trading. All debenture bond series have been closed.
ECBC Covered Bond Label
Those by Danish Ship Finance issued bonds which comply with the CRD requirements, are further eligible of carrying the ECBC’s (European Covered Bond council) designation as Covered Bonds.
In order to comply with ECBC’s definition of Covered Bonds, Danish Ship Finance A/S is required to follow the national Danish guidelines on transparency. Under these requirements, Danish Ship Finance A/S publishes key account data and capital ratios on a semi-annual basis. These data are published in accordance with the publication of the annual- and semi-annual financial statements.
Latest published transparency forms:
Capital Centre A
General Capital Centre