Nationwide debuts 10 year Sonia linker

sterling demand
By Bill Thornhill
16 Feb 2021

Nationwide Building Society has become the first borrower to issue a 10 year deal linked to the Bank of England’s Sonia index. The covered bond, which was issued on Tuesday with a highly oversubscribed order book, provided Nationwide with its cheapest ever funding and will be closely watched by other issuers looking to make similar deals.

Nationwide mandated joint leads Credit Suisse, NatWest Markets, Royal Bank of Canada and Toronto-Dominion on Tuesday, simultaneously opening order books with guidance of 45bp over Sonia.

After 90 minutes, demand exceeded £1bn ($1.4bn). Towards midday UK time, when £1.5bn of demand was in the book, a £750m deal was ...

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