NAB out with US targeted 5.25 year covered bond
National Australia Bank is launching a five-and-a-quarter year US dollar covered bond alongside a three year senior unsecured FRN, also targeted at the US, it announced this (Thursday) afternoon, three days after Westpac sold a $1.5bn five year covered bond.
Leads Barclays, Bank of America Merrill Lynch, JP Morgan and NAB have gone out with initial price thoughts (IPTs) of the high 40s over mid-swaps for the February 2019 covered bond.
Westpac priced a $1.5bn five year 144A/Reg S deal at 46bp over mid-swaps on Monday on the back of some $2bn of orders. The deal was its second US targeted covered bond this year.
NAB visited the US market in February, pricing a $1.75bn five year at 42bp over, and has also sold benchmark covered bonds in sterling and euros this year.