BNZ Guidance On EUR500 Million 2015 Covered Bond, Swaps +1.25 Area

1 min read

The FINANCIAL — BNZ International Funding Ltd., a wholly owned subsidiary of the Bank of New Zealand, has set pricing on a EUR500 million covered bond maturing in 2015, one of the banks running the deal said Monday, according to Borsa Italiana – London Stock Exchange Group.

 

Initial guidance is in the area of 125 basis points over midswaps.

DZ Bank, JPMorgan Chase & Co., Natixis, National Australia Bank Ltd., Royal Bank of Scotland Group PLC and UniCredit SpA are the joint bookrunners on the sale.

The bond will be backed by prime New Zealand residential mortgages and is expected to be rated triple-A by Moody's Investors Service and Fitch Ratings.

Earlier this month, BNZ withdrew a planned five-year covered bond. One bank involved in the deal cited investor concerns about the lack of legislation on New Zealand covered bonds.

 

 

Leave a Reply