Toronto-Dominion Bank sold a $1.75bn five year covered bond yesterday (Monday), pricing the deal after the US open at 60bp over mid-swaps – matching the spread and size of a market opener last week from fellow Canadian issuer Bank of Montreal.

Toronto-Dominion leads BMO, BNP Paribas, Goldman Sachs, HSBC and TD launched the new five year 144A issue with initial price thoughts of the low to mid-60s over mid-swaps yesterday morning. The deal was priced after the US open at 60bp and the size set at $1.75bn (Eu1.66bn, C$2.32bn).

The deal is the second benchmark covered bond in the US dollar market so far this year, following a $1.75bn five year issue for Bank of Montreal last Wednesday. BMO’s deal was also launched with IPTs of the low to mid-60s before being priced at 60bp, and was seen trading at around re-offer.

“It’s exactly in line with BMO’s deal, which I’m sure all parties will be happy with,” said a banker away from the leads. “It’s not often you see two big dollar deals so close together in the covered bond market, so this reflects well on the depth of demand at the moment.”

TD’s last US dollar benchmark was a $1.75bn March 2023 issue, which was priced last March. The issuer also issued benchmark covered bonds across euros, sterling and Canadian dollars last year, including a C$1.5bn five year domestic debut in June.