Fallback plans in connection with benchmarks

Jyske Realkredit A/S has prepared fallback plans for benchmarks.

Our fallback plans apply to credit agreements, loan agreements and derivatives transactions, etc. using reference rates, categorised as benchmarks according to the Benchmark Regulation.

The fallback plans specify alternatives to be used if the benchmark agreed changes materially or ceases to exist.

The implication of fallback plans for benchmarks to out clients

If a benchmark, for instance CIBOR3, is changed materially or ceases to exist, and you have:

•a credit or loan agreement stipulating that the rate of interest is determined on the basis of CIBOR3.

•entered into a derivatives transaction, for instance an interest-rate swap, where payments are determined on the basis of CIBOR3 the fallback plan will state a new, corresponding reference rate or representative rate.

In some cases, you will already have entered into an agreement on an alternative reference rate. In such cases, such an agreement will still apply to you.

How are the bank's fallback plans determined?

It is the intention of Jyske Realkredit that the bank's fallback plans reflect the market practice agreed at a national, Nordic or international level, as benchmarks are used in connection with transactions between banks and clients and among banks themselves.

On an ongoing basis, Jyske Realkredit follows the international work on fallback plans and participates in the national and Nordic cooperation on national and Nordic benchmarks. At the present point in time, this process has not been completed. When practices in the market are agreed, Jyske Realkredit will update its fallback plans.

If a benchmark changes materially or ceases to exist before an alternative has been established, the Bank will establish a new and corresponding official reference rate or a representative rate. We will establish a representative rate on the basis of other official reference rates applicable for the same period.