The Covered Bond Report

News, analysis, data

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.

NAB image

National Australia Bank, Victor Harbor

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.