Canada

Scotiabank has tapped its three year sterling FRN for £300m, a day after Barclays issued a £1bn deal in the same maturity. A euro deal could be announced shortly, but bankers warn that the size of the new issue premium needed in euros will present a quandary.

National Bank of Canada has mandated leads for a roadshow starting next week.

Czech Raiffeisenbank opened books for the first publicly syndicated euro benchmark from the country on Wednesday and had attracted sufficient order interest at the guidance level to make a deal viable. At the same time, Toronto Dominion Bank mandated leads for its first Australian dollar benchmark.

Bank of Nova Scotia (BNS) was set to price its third euro benchmark of the year, and its fourth covered bond benchmark across all currencies, on Tuesday. The €1.25bn tranche took advantage of space created by robust Eurosystem central bank demand at the short end. Responding to reverse enquiry, the issuer also priced a £250m three year floater on a book that was twice subscribed.

Toronto Dominion returned to the euro covered bond market for the second time this year, pricing the third seven year from an issuer outside the eurozone this week. The spread TD achieved reflected the importance of regulatory treatment, since better treatment allowed Nationwide to price tighter, and worse treatment forced Commonwealth Bank of Australia to price wider.

Canadian Imperial Bank of Commerce has priced the tightest ever Canadian covered bond issued in euros. The price discovery process was also notable for skipping out guidance and going straight from initial price thoughts (IPT) to final spread.

Canadian Imperial Bank of Commerce has mandated leads for its first euro benchmark covered bond of the year. With comparable deals trading through mid-swaps, the transaction has potential to price inside Euribor, even though its bonds are not eligible for the European central bank’s purchase programme.

The lack of a securities lending market for green bonds could be stifling the ability of banks to make markets in the product, leaving the buyside struggling to pick up paper in secondaries, a leading investor told GlobalCapital this week. But on the primary side, green demand grows ever healthier, with another set of firsts from public sector borrowers on the way.

TD priced a $1.75bn 144A private placement covered bond on Thursday at the same spread as Bank of Nova Scotia, which issued a $1.5bn SEC-registered deal two weeks ago. The deal should have priced wider but thanks to demand from Europe, it got great price tension.

Toronto-Dominion has mandated leads and announced initial price thoughts for its first benchmark US dollar covered bond under Canadian legislation.

Royal Bank of Canada returned to the dollar covered bond market for the first time this year, issuing the third benchmark in that currency this month. The $1.75bn deal priced at 27bp over mid-swaps, making it the equal largest this year and tightest in dollars for several years.

Royal Bank of Canada (RBC) mandated and launched the fifth US dollar covered bond benchmark of the year on Tuesday. The issuer followed the lead of Bank of Nova Scotia which priced the first US dollar denominated Canadian covered bond a fortnight ago.