CORPORATES DAILY

Corporate bonds • 02.07.2010

DONG Energy raises new loan

Market Comments disbursed over the entire construction period
The credit market was under pressure as of the The company states that the loan matches its
early morning as Moody’s announced that its strategy of diversifying its types of loans. We
rating of Spain will probably be lowered by two maintain our BUY recommendation of DONG’s
notches. The market reacted in such a way that, hybrid issue.
at the opening, Xover widened by about 20 bp
to 597. Xover traded in an range of 577-598 Corporates Daily on summer holiday
and closed at 587. High yield bonds were under Corporates Daily will be on summer holiday
slight pressure and fell generally by a half to from 5 July and will be back on 2 August. We
one point. Lipper published figures for the US wish all our readers a good summer!
funds, from which this week saw an outflow of
USD 332m as compared to last week’s inflow of
USD 1.4bn (the inflow year-to-date is at modest
USD 146m). For the first time in 15 months we
saw an outflow from high-grade funds, yet only
of modest USD 56m. Year-to-date, the total
inflow to high grade amounts to impressive
USD 70bn.

DONG Energy raises new loan

Publisher: Dong has raised a new loan in the amount of
Jyske Markets GBP 250m from the European Investment Bank
Vestergade 8-16 in cooperation with a leading international
DK - 8600 Silkeborg bank. The loan relates to the construction of the
off-shore wind farm London Array and can be
Analyst:
Alex Hauge Andersen
+45 89 89 76 88
Alex@jyskebank.dk iTraxx Xover VDAX
36
750
Translation : 34
32
Translation Services 650
30
550 28
Read more corporate
bp.

26
Vol.

450
bond research reports at 24

www.jyskemarkets.com 350 22
20
250 18
03-01-10 08-02-10 16-03-10 21-04-10 27-05-10 02-07-10 16
S12 S13 02-02-2010 02-03-2010 02-04-2010 02-05-2010 02-06-2010 02-07-2010

ML EUR High Yield spread Moody’s European default rate

2500 18%
16%
2000 14%
12%
10%
1500
8%
bp.

6%
1000 4%
2%
500 0%

0
Disclaimer: 02-07-2000 02-07-2002 02-07-2004 02-07-2006 02-07-2008 02-07-2010
Please see the last page Default Rate Moody's Baseline Moody's Pessimistic Moody's Optimistic

i
CORPORATES DAILY
Corporate bonds • 02.07.2010

Disclaimer & Disclosure

Jyske Bank is supervised by the Danish Financial Supervisory Authority.

The research report is based on information which Jyske Bank finds reliable, but Jyske Bank does not assume any responsibility for the
correctness of the material nor any liability for transactions made on the basis of the information or the estimates of the report. The
estimates and recommendations of the research report may be changed without notice. The report is for the personal use of Jyske
Bank's customers and may not be copied.

This is a recommendation and not an in-depth investment report.

Conflicts of interest
Jyske Bank has prepared procedures to prevent conflicts of interest, although analysts may have different tasks. These procedures have
been incorporated in the business procedures covering the corporate-bond research activities of Jyske Markets, a business unit of Jyske
Bank.

Jyske Bank's corporate-bond analysts may not hold positions in the instruments for which they independently prepare research
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Read more about Jyske bank's policy on conflicts of interest at www.jyskebank.dk/terms.

Jyske Bank’s corporate bond recommendations – current breakdown

Breakdown of recommendations, corporate bonds (number)
35

30

25

20

15

10

0
BUY HOLD SELL

Source: Jyske Bank

Financial models
Jyske Bank uses mainly Credit Edge from Moody’s.

Risk
Investment in this corporate bond is associated with risk. Movements in the credit market, the sector and/or the news flows, etc.
regarding the company may affect the price of the bond. See the front page of the research report for our view of the risk associated
with the corporate bond. The risk factors stated and/or calculations of sensitivities in the research report are not to be considered all-
encompassing. If the corporate bond is denominated in a currency other than the investor’s base currency, the investor accepts an FX
risk.

Update of the research report

The planned update of the report will be prepared immediately upon the release of the company’s financial statements.

See the front page for the initial date of publication of the report.
All prices stated are the latest trading prices at the time of the release of the research report, unless otherwise stated.