Cover Pool

DLR Kredit is a significant lender on the Danish mortgage market and mainly grants loans for agricultural property, office and retail property, private residential rental property and private co-operative housing property.

The loan portfolio amounted to DKK 141bn as per 31 December 2017. Loans are issued out of one of DLR’s two separate cover pools (capital centers), including DKK 136bn of SDO loans issued from Capital Centre B and DKK 5bn of RO loans issued from the General Capital Centre. In early 2008, DLR switched to SDO lending in response to the new CRD regulation on covered bonds and at the same time ceased to issue RO loans.

DLR has no branch network of its own, because the owner banks refer loans/customers to DLR and manage the customer contact.

DLR loans are subject to loss guarantee schemes. In addition, any loss will be offset against the commissions due to the arranging bank.

DLR employs the so-called ”specific balance principle”, which was created to limit the mortgage banks’ financial risk exposure. Due to the one-to-one matching of loans and bonds, the main risk factor for DLR is the borrowers’ ability to pay.

The distribution of assets at cover pool level is disclosed in the quarterly cover pool reports arrow3

Contact IR

Jakob Olsson

Head of Rating & IR

+45 33 42 07 06 -