Project Grønttårnet

Project Grønttårnet

for such LTV ratios through the issue of covered bonds, which are among the most liquid and secure asset classes in Europe, typically boasting AAA-ratings. It is possible to obtain financing at flexible or fixed rates, and compared to most other countries, Denmark has exceptionally low financing costs and a highly transparent cost structure. Interest rates remain very low, with flexible interest rates currently around the 0.00% mark and fixed interest rates of some 2.50%, both with bonds selling at market prices close to face value. Interest rate margins are typically somewhere between 40 and 100 bps for residential properties, depending on LTV and the interest-only period. Core properties generating stable long-term cash flows, such as well- located residential properties, usually qualify for easy access to attractive mortgage financing in Denmark.

28