CIBC is taking orders for a five year US dollar covered bond, its first benchmark covered bond in the currency for more than two years and the first from any issuer in almost three months. The deal is set to be priced later today (Thursday), with the leads having set IPTs of the low 50s over mid-swaps.

Canadian Imperial Bank of Commerce’s (CIBC’s) last benchmark US dollar covered bond came in July 2015, when it sold a $1.2bn (Eu1.04bn, C$1.51bn) five year 144A issue. The issuer has since focussed its covered bond issuance mainly in the euro and sterling markets, having sold two sterling-denominated trades this year, the most recent a £525m five year issue on Monday of last week (10 July).

Leads CIBC, Citi, HSBC and UBS launched the five year fixed rate 144A/Reg S issue with initial price thoughts of the low 50s over mid-swaps this morning. The deal will be priced after the US open.

The new issue is the third benchmark US dollar covered bond from Canada this year, following $1.75bn five year trades for Bank of Montreal and Toronto-Dominion that were both priced at 60bp in January.

Bankers said the initial price thoughts of CIBC’s new issue offered a premium of around 7bp-8bp, seeing the BMO and TD January 2022s trading in the low 40s, mid, this morning.

The deal is the first benchmark US dollar covered bond since a $600m three year for Deutsche Pfandbriefbank on 25 April.