Canadian Imperial Bank of Commerce priced a A$300m (Eu205m, C$289m) five year floating rate note at 65bp over three month BBSW on Friday in a deal that attracted new investors to the credit and offered arbitrage, but which was smaller than previous Canadian Kangaroos.

The books for the deal had been opened by leads HSBC, NAB and UBS on Thursday with guidance of the 65bp area.

The spread is the same as the last Australian dollar covered bond, a A$600m five year issue for Bank of Nova Scotia priced at 65bp over in mid-January that was, according to a market participant, trading at 62bp-63bp this week.

However, CIBC’s size was half of its peer’s deal and smaller than the A$500m size achieved by the issuer when it last issued in Australian dollars with a long three year FRN in October 2013.

“Notwithstanding the smaller size, the deal met our requirements,” said Wojtek Niebrzydowski, vice president, treasury, at CIBC. “We returned our name to the market, we have a new benchmark, and it’s a cost-effective transaction.”

He noted that CIBC had attracted some new investors with the transaction.

A syndicate official at one of the leads estimated that the new issue came around 4bp inside of what the issuer would have achieved in dollars. The level was the equivalent of around dollar Libor plus 35bp and, ahead of the recent market volatility, five year US dollar covered bonds from Canada, Australia and the Nordics had been priced at 37bp over.

“The pricing is cost-effective for us,” said Niebrzydowski, “both in the context of where our domestic senior funding is and where we think we could do trades in other major markets.”

The Kangaroo issue is CIBC’s third covered bond of the year, following a £500m (Eu681m, C$957m) three year deal and a Eu1bn (C$1.4bn) five year, which were both sold in January.