NAB Sells Its First Australian Covered Bond Since Change to Laws
This article is for subscribers only.
National Australia Bank Ltd. raised A$750 million ($671 million) with its first domestic covered bond sale since a 2011 law change allowing Australian lenders to sell the collateral-supported securities.
The 10-year notes were priced to yield 80 basis points more than the swap rate, according to a statement from the Melbourne-based issuer. While NAB and its international subsidiaries have previously sold the equivalent of $28.5 billion of the notes in other currencies including euros and British pounds, this is the first Australian dollar deal it has done since its Auckland-based unit Bank of New Zealand priced A$700 million of notes in June 2011, according to data compiled by Bloomberg.