The bank has also issued a new Tier 2 bond issue of NOK100m with a floating coupon rate of three months NIBOR
Chart 4 shows the average spread over NIBOR
that banks paid each month on their issuances of floating rate notes and bonds from 2007 until end-2009.
From the start of the arrangement (fall 2008) to the summer 2009, the minimum interest rate in the auction was set below the NIBOR
rate and the auctions were always cleared at the minimum rate, despite periods with high bid/cover ratios.
Charts 5 and 6 show a comparison of three and five year swap rates, respectively, against average future three-month NIBOR
for the same time periods.
Floating rate linked to NIBOR
3md (interest method 365/360).
Per cent per annum 1-month 3-month 12-month NIDR NIBOR
July 2004 2.
Alt 1: Floating interest tied to 3-month NIBOR
, interrogated Reuters kl.
The interest rate will be adjusted to three months NIBOR
Following the increase, the instrument, which carries a coupon of three-month NIBOR
plus 108 basis points, aggregates NOK200m.
The value of this portfolio is zero at the time of establishment, and the payment flows in the next 10 years are as follows: a 10-year government bond rate is paid annually, and a 10-year swap rate received, while 6month Treasury bill interest is received and 6-month NIBOR
Per cent per annum 1-month 3-month NIDR NIBOR
July 2003 4.
Fixed rate over 5 years or 3 month NIBOR