National Australia Bank launched the first foreign covered bond of the year in Swiss francs today (Wednesday), a Sfr200m (Eu162m, A$246m) 10 year covered bond that was priced through domestic Swiss issuers, according to a syndicate official at the lead.

Credit Suisse priced the Australian bank’s deal at mid-swaps flat, sizing the new issue at Sfr200m to reflect demand, said the syndicate banker.

National Australia Bank, Victor Harbor

The deal is the first covered bond in the Swiss foreign bond market this year.

Pricing of mid-swaps flat for NAB gave the Australian credit pricing through domestic Swiss benchmark issuers Pfandbriefbank schweizerischer Hypothekarinstitute and Pfandbriefzentrale der schweizerischen Kantonalbanken, according to the syndciate banker.

He attributed the deal’s success to a combination of the maturity, a scarcity of supply, and NAB’s strong senior ratings as well as the bank’s standing in the senior market in Swiss francs.

“It is well established and people are very familiar with the Australian covered bond product in Switzerland,” he added, “so they didn’t really need a roadshow.”