Copenhagen Stock Exchange: Extraordinary Reduction Of The Minimum Coupon Rate

The minimum coupon rate applicable to bonds, mortgage deeds, debt instruments and other money claims will for the period from 10 October 2002 to 31 December 2002 be extraordinarily lowered to 3 % p.a.

The last time that the minimum coupon rate was extraordinarily reduced was in November last year, when the minimum coupon rate for the period 23 November to 31 December 2001 was at 3 per cent. In connection with the subsequent ordinary fixing of the minimum coupon rate for the period 1 January to 30 June 2002, the minimum coupon rate was tightened again to 4 per cent p.a.

The minimum coupon rate is a calculated rate, which is used inter alia to determine whether capital gains on bonds and other money claims are taxable on redemption or disposal.

The minimum coupon rate is fixed biannually for the six-month periods January-June and July-December. The minimum coupon rate is calculated as a simple average - calculated to two decimal places - of the average yields on open fixed-rate DKK bonds during a period of 20 trading days prior to 15 June and 15 December, respectively. The average yield is multiplied by the factor 7/8 and rounded down to the nearest integer. If the market rate changes significantly, the minimum coupon rate may be adjusted extraordinarily.

The calculation for the next ordinary adjustment of the minimum coupon rate for the period 1 January to 30 June 2003 is commenced on Monday 18 November.