Investors in debt & capital instruments

Get a quick overview of the Jyske Bank Group in the Credit Profile and find more information on funding and issuance of debt instruments in Funding Programs below.

Funding programs

Jyske Bank issues bonds and debt instruments in the international financial markets. Debt instruments issued by Jyske Bank A/S can be rated by Standard & Poor’s, see ratings for the specific ratings applied to different types of debt instruments.

Short term funding
Jyske Bank set up a French commercial paper program in 2006 to strengthen diversification of short term funding sources and prolong the duration of the short term funding. Banque de France regulates the program and the Information Memorandum as well as market statistics can be found via the below links:

Long term funding
Jyske Bank set up an EMTN program in 1997. The first senior unsecured public benchmark bond was issued in 2003 and Jyske Bank has since 2011 been an active issuer in the European capital markets.

Jyske Bank's 2023 EMTN Prospectus includes the possibility to issue preferred senior (“PS”) notes as well as non-preferred senior (“NPS”) notes in addition to subordinated Tier 2 notes and AT1 notes. The Prospectus can be found below:

Jyske Bank 2024 EMTN Prospectus

The 2023 Prospectus will expire on 10 May 2024. The new 2024 Prospectus is expected to be available on this web-site around the 21-22 May 2024.

MREL

The Jyske Bank Group’s MREL comprises of:

  • Banking activity requirement
    • 2 x solvency requirement (loss absorption + recapitalisation) incl. all buffer requirements (counter cyclical buffer (“CCyB”) not doubled up)
    • Calculated on the basis of REA for banking activities only
  • Mortgage activity requirement
    • Capital requirement (loss absorption) and the debt buffer for mortgage institutions which must be 2% of total unweighted mortgage loans
  • Group requirement:
    • The sum of the group’s capital requirement, debt buffer requirement and bail-inable liabilities must be above 8% of the group’s total liabilities and own funds (TLOF)

Group capital that is utilised towards the mortgage bank’s capital and debt buffer requirements is not eligible to count towards the banking activity MREL requirement.

From January 2022 the regulatory constraint has been the highest of the 8% of Group TLOF requirement and the combined requirement (MREL for banking activities + capital requirement for mortgage activities + mortgage debt buffer)

MREL is set by the Danish FSA on an annual basis as a percentage (%) of banking activity REA.

  • The percentage will remain fixed for the following yearbut the actual requirement in DKKbn will be dynamic (an increase in banking REA will increase the MREL requirement in DKK bn and vice versa).
  • If the capital requirements change (e.g., the reintroduction of the countercyclical buffer (“CCyB”) or any other systemic risk buffer such as the “CRE-buffer” from Q2 2024), the FSA sets a new MREL requirement as a percentage of banking activity REA.
  • Variations in Pillar II will not automatically trigger a new MREL requirement.

Countercyclical buffer (“CCyB”)
End of March 2023 the Danish CCyB requirement was fully re-phased in and has since then constituted 2.5 % of REA. The CCyB must be subordinated as it is to be fulfilled by CET1.

Upper limit for subordination
BRRD II imposed an upper limit for subordination in the MREL requirement related to banking activities, set as the highest of:

  1. 2 x the solvency requirement plus 1 x the combined buffer requirement (~DKK 42bn)
    and
  2. 8 % of banking TLOF (~DKK 22bn)

For the Jyske Bank Group’s banking activity MREL, “a” is the highest. Consequently, the PS allowance for the Jyske Bank Group is 4% of banking activity REA (DKK 148bn end of March 2024) which mirrors the combined buffer requirement (“CBR”) excl. of the CCyB and can be calculated as DKK 5.9bn at the end of March 2024.

Requirements for Q4 2023

Group requirements
For a graphic overview of the Group level requirement for Q1 2024 and Group ressources as of end of March 2024 look HERE.

The yellow “MREL resources 31 March 2024” reflect total Group MREL eligible resources which amount to DKK 78.5bn; Group capital (CET1 of DKK 38.5bn, AT1 of DKK 4.8bn and Tier 2 of DKK 7.5bn) as well as NPS and MREL eligible PS of respectively DKK 24.0bn and DKK 3.7bn.

The calculation of Jyske Bank’s “Group requirements” are based on the highest of either 8 % of TLOF (DKK 770.0bn) which is DKK 61.6bn) or the combined requirement with the 2 % debt buffer (DKK 7.0bn) which is DKK 68.2bn and thus the binding Group requirement in Q1 2024.

If the 8 % requirement is the highest, the debt buffer requirement in Jyske Realkredit will be increased with the difference between the 8 % and the combined requirement.

MREL requirements for banking activities

Jyske Bank – banking activity capital & MREL requirement in % (of banking activity REA) and in DKKbn

MREL Hereof subordinated MREL Hereof non subordinated MREL
MREL Position/ressources DKKbn 31.03.2024 57.3 53.6 3.7
MREL req. DKKbn Q1 2024 47.1 41.2 5.9
MREL buffer DKKbn 31.03.2024 10 12 -2
MREL position/ressources (%) 31.03.2024 38.9% 36.3% 2.6
MREL requirement (%) Q1 2024 32.2% 28.2% 4.0%
MREL buffer % 31.03.2024 6.7% 8.1% -1.4%

For a graphic overview look HERE.

The yellow “MREL resources 31 March 2024” reflect the Group capital available to comply with the banking activity capital and MREL requirements after deducting resources needed in JRK (see above under “Group requirements”). The MREL requirement of 31.9 % of banking activity REA (DKK 147.5bn) incl. of the 4 % PS allowance/CBR is DKK 47.1bn end of Q1 2024 vs. available ressources end of Q1 2024 of DKK 57.3bn.

The negative non-subordinated MREL buffer simply illustrates that as of end of Q1 2024, after call of SEK 3bn PS in March (redeemed 12 April), Jyske Bank does not fully use the PS allowance in BRRD2 (4 % as of end Q1 2024). Consequently, the MREL requirement is fulfilled with a higher proportion of higher ranking debt instruments (NPS).

Requirements for 2024 & CRE-buffer 

Systemic Risk Buffer for commercial real estate exposures (“CRE-buffer”)

On 3 October 2023 the Danish Systemic Risk Council recommended that the Minister for Industry, Business and Financial Affairs activates a sector-specific systemic risk buffer for exposures to real estate companies at a rate of 7 per cent, applicable from 30 June 2024.

The government has stated that it will implement the CRE buffer. Since the initial recommendation in October 2023 exposures with LTVs 0-15 % have been excluded from the requirement.

The CRE buffer is not to be dissolved in stress tests (as is the case with the CCyB). Consequently, in addition to increasing the capital requirements it will also increase the MREL requirements for banking activities.

The impact will be calculated as:

    • 7 % of the REA of the defined CRE sectors in Jyske Realkredit and added to the capital requirement of Jyske Realkredit
    • 7 % of the defined CRE sectors in Jyske Bank and added to the capital requirement of Jyske Bank. In addition, the requirement in Jyske Bank will be a double up via the MREL for banking activities.

The Systemic Risk Council must evaluate the buffer requirement at least every two years (and it can be released if the identified systemic risks abate)

Expected requirements for Q2 2024

Due to the implementation of the new CRE requirement by 30 June 2024, Jyske Bank’s MREL requirement will increase from Q2 2024. The Q2 2024 MREL requirement is currently expected to be 32.5 % of which 28.2 % subordinated. Graphic illustrations of the currently expected requirements for Q2 2024 for the Group and for the banking activities are included in the graphs showing the actual Q1 2024 requirements. All expected requirements and resources for Q2 2024 are based on Q1 2024 REA, CET1, AT1 and Tier 2 capital.

Debt instruments (senior preferred & senior non-preferred)

Below you can find an overview of outstanding benchmark bond issues and download the Final Terms of the bond issues.

S&P ratings of the senior bonds: A+ for preferred senior, BBB+ for non-preferred senior.

Preferred senior benchmark bonds in the market:

Non-Preferred senior benchmark bonds in the market:

  • EUR 500m fixed rate note (XS2243666125) – issued in October 2020 – 5 year maturity (October 2025) but may be called by Jyske Bank in October 2024 (5NC4 structure)
  • EUR 500m non preferred senior fixed rate note (XS2382849888) – green bond issued in September 2021 – 5 year maturity (September 2026) but may be called by Jyske Bank in September 2025 (5NC4 structure)
    See more about green bonds under Green bonds further below.

  • EUR 500m fixed rate note (XS2544400786) – issued in October 2022 – 3.5 year maturity (April 2026) but may be called by Jyske Bank in April 2025 (3.5NC2.5 structure)

  • EUR 500m non preferred senior fixed rate note (XS2555918270) – green bond issued in November 2022 – 5 year maturity (November 2027) but may be called by Jyske Bank in November 2026 (5NC4 structure)
    See more about green bonds under Green bonds further below.

  • SEK 1bn non preferred senior fixed to floating rate note XS2582406935) – green bond issued in February 2023 – 4 year maturity (February 2027) but may be called by Jyske Bank in February 2026 (4NC3 structure)

  • SEK 1.25bn non preferred senior floating rate note (XS2582407156) – green bond issued in February 2023 – 4 year maturity (February 2027) but may be called by Jyske Bank in February 2026 (4NC3 structure)
    See more about green bonds under Green bonds further below.

  • EUR 500m non preferred senior fixed rate note (XS2615271629) issued in April 2023 – 5.5 year maturity (October 2028) but may be called by Jyske Bank in October 2027 (5.5NC4.5structure)
     
  • EUR 500m non preferred senior fixed rate note (XS2715957358) – green bond issued in November 2023 – 6 year maturity (November 2029) but may be called by Jyske Bank in November 2028 (6NC5 structure)
    See more about green bonds under Green bonds further below.

  • EUR 500m non preferred senior fixed rate note (XS2831594697) issued in June 2024 – 6.25 year maturity (September 2030) but may be called by Jyske Bank in September 2029 (6.25NC5.25 structure)

For a full overview of the call-profile of the Jyske Bank Groups long term debt (NPS & PS) please see HEREBonds that have been called are not included in the graph.

Capital instruments (Tier 2 and AT1)

Tier 2 bonds

In January 2020 Jyske Bank A/S issued EUR 200m of 11NC6 subordinated Tier 2 bonds under the EMTN programme:

The bond has final maturity in January 2031 and an issuers call right in January 2026. The bond is rated BBB by S&P.


In March 2021 Jyske Bank A/S issued dual-tranche SEK & NOK 10NC5 subordinated Tier 2 bonds under the EMTN programme:

The bonds have final maturity in March 2031 and an issuers call right in March 2026. The bonds are rated BBB by S&P.


In August 2022 Jyske Bank A/S issued triple-tranche DKK, NOK & SEK 10NC5 subordinated Tier 2 bonds under the EMTN programme:

The bonds have final maturity in August 2032 and an issuers call right in August 2027. The bonds are rated BBB by S&P.


In January 2024 Jyske Bank A/S issued EUR 500m of 11.25NC6.25 subordinated Tier 2 bonds under the EMTN programme:

The bond has final maturity in May 2035 and an issuers call right “Optional Redemption Date” on each Business Day falling in the period from (and including) 1 February 2030 to (and including) 1 May 2030.

The bond is rated BBB by S&P.


AT1 bonds

In September 2017 Jyske Bank A/S issued EUR 150m additional Tier 1 (AT1) capital:

  • EUR 150m of Fixed Rate Notes (interest rate of 4.75%) ISIN XS1577953331

The AT1 issue has perpetual maturity and may be called by Jyske Bank A/S in September 2027 at the earliest. The bonds are rated BB+ by S&P.

The Prospectus can be found here.


On 26 May 2021 (with value date 4th June 2021) Jyske Bank A/S issued EUR 200m additional Tier 1 (AT1) capital:

The AT1 issue has perpetual maturity and may be called by Jyske Bank A/S at any date from 4 December 2028 to (and including) the First Reset Dateon 4 June 2029 (6-month par call) or any Interest Payment Date thereafter.

The bonds are rated BB+ by S&P and are issued under Jyske Bank’s EMTN program.


On 6 February 2024 (with value date 13 February 2024) Jyske Bank A/S issued EUR 300m additional Tier 1 (AT1) capital:

The AT1 issue has perpetual maturity and may be called by Jyske Bank A/S at any date from 13 August 2030 to (and including) the First Reset Date on 13 February 2031 (6-month par call) or any Interest Payment Date thereafter.

The bonds are rated BB+ by S&P and are issued under Jyske Bank’s EMTN program.

For a full overview of the call-/reset profile of the Jyske Bank Groups Tier 2 and AT1 bonds please see HEREBonds that have been called are not included in the graph.

Green bonds

Climate is a material impact area for Jyske Bank, and we have focus on identifying business areas that can contribute to sustainable solutions and help to reduce CO2e-emissions. 

To support the growth of our lending for sustainable activities, we have defined principles for financing of sustainable lending through the issue of Green Bonds from both Jyske Bank A/S and Jyske Realkredit A/S.

The principles for Green Bonds issued by the Jyske Bank Group have been defined according to ICMA’s Green Bond Principles and follow the guidelines for selection, reporting and allocation of funds.

An independent assessment of our Group Green Finance Framework has been performed by Sustainalytics. Sustainalytics concludes that “the Jyske Bank Group Green Finance Framework is credible and impactful”. 

For more information on our Green Finance Framework and to see the 2nd party opinion from Sustainalytics please use these links: 

Jyske Bank Group Green Finance Framework November 2022
Jyske Bank Group Green Finance Framework 2021
2nd party opinion from Sustainalytics
Green Finance Framework Report - February 2021

For more information on Sustainability at Jyske Bank use this link.

Green bonds issued by Jyske Bank:

Funding plans & issuance of capital instruments

Overall issuance of capital instruments (AT1 and Tier 2) is driven by regulatory requirements. Ongoing capital management aims to keep the outstanding amount of such instruments at a fixed percentage of REA to optimize capital structure. Timing of issuance will naturally depend on the spread requirement (market price) of capital instruments compared with cost of capital (CET1).

Senior issuance is driven primarily by MREL requirements but might also be influenced by NSFR.

Based on expected REA increase and changed regulation, Jyske Bank anticipates a requirement for outstanding MREL-eligible debt instruments in 2024 in an amount of DKK 29-31bn (EUR 3.9-4.2bn):

  • ~ DKK 6bn (EUR 0.8bn) PS debt
  • ~ DKK 23-25bn (EUR 3.1-3.4bn) of NPS debt

The outstanding MREL eligible instruments reflect the statutory requirements as well as an internal buffer to the statutory requirements.

End of March 2024 the outstanding amount of MREL eligible debt instruments constituted DKK 24.0bn of NPS and DKK 3.7bn of PS.

Jyske Bank issuance plans for the rest of 2024:

  • EUR 500m NPS
  • EUR ~300m PS