Nationwide brings trailblazing 20 year covered

By Bill Thornhill
29 Apr 2021

Nationwide Building Society issued the first UK covered bond of the year, the first to test appetite since Brexit was concluded and the first UK deal with a 20 year tenor in euros. As such it offered a particularly rare opportunity to get some spread and yield pick-up.

After mandating ABN Amro, BNP Paribas, NatWest Markets and UBS on Monday, leads opened order books on Tuesday for the €500m deal due May 2041 with initial guidance of 15bp area over mid-swaps.

After 45 minutes, demand stood at €1.25bn and in less than two hours, when demand ...

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