Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  National Australia Bank Ltd.    NAB   AU000000NAB4

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

National Australia Bank Ltd. : NAB Sells $1.25 Billion Of Covered Bonds At Record-Low Coupon

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/13/2012 | 12:37am CET
   By Patrick McGee 
 

National Australia Bank Ltd. (NAB.AU) garnered the lowest yield on record for an Australian bank selling covered bonds priced in U.S. dollars on Tuesday.

The deal marks the fourth greenback-covered bond sale from an Australian bank, and the first from NAB, since legislation allowing the assets to be sold was passed last fall.

NAB, the country's fourth-largest lender by market value, sold $1.25 billion of five-year bonds with a 2% coupon, compared with a range of 2.25% to 2.45% from the prior three deals, all of which were for five-year bonds.

NAB's bonds were priced to yield 2.032%, or 1.295 percentage point over the Treasury rate. When it sold $1.25 billion of five-year unsecured bonds in March, they carried a coupon of 2.75% and were priced to yield 2.79%, or 1.90 point over Treasurys.

The much tighter spread stems from the extra protection embedded in the covered bond, which offers investors the full faith and credit of the issuer and also the added protection of a pool of mortgage assets. If NAB ever defaulted on its bonds, the stream of payments from the mortgage pool would "cover" the bondholders.

These bonds are backed 100% by Australian prime residential mortgages, earning them triple-A ratings from Moody's Investors Service and Fitch Ratings. NAB's unsecured bonds are rated Aa2 by Moody's, and AA-minus by Fitch and Standard & Poor's.

NAB Chief Executive Cameron Clyne told reporters last month that NAB was planning to issue more covered bonds because the recent flare-up in Europe was hurting international debt markets.

"None of these issued in Europe are helpful to our funding profile," he told reporters May 10, following the bank's earnings report. "If we do see an elevated period of concern...we can start to use some more of our covered bond capacity."

Since December, NAB has sold covered bonds on 12 occasions, including in euros, British pounds, Norwegian kroner and New Zealand dollars, according to data from Dealogic. The lowest fixed-rate coupon among them was a 2.375% bonds priced in New Zealand dollars.

Tuesday's deal pushes year-to-date issuance in the U.S. dollar covered bond market to $26.15 billion, according to Dealogic. Last year's record issuance was just less than $40 billion.

The last covered bond to price in the U.S. was a $2 billion, 2.25% coupon, five-year deal from Barclays. It priced at 2.352%, or 1.53 points over Treasurys.

Write to Patrick McGee at patrick.mcgee@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NATIONAL AUSTRALIA BANK LT
01/18DJWarburg Pincus-Backed Developer to Buy 80% of Cambridge Industrial Trust's Ma..
01/15 NATIONAL AUSTRALIA BANK : BNZ post filled
2016 SELF-DOUBT, PLANNING HOLDING AUSSIES : Q3 MLC Wealth Sentiment Survey
2016 REA : Brokers Welcome REA Group's European Sale
2016 NATIONAL AUSTRALIA BANK : Trends for Small Business in 2017
2016DJAustralia Regulator Tackles CBA, NAB for Forex Desk Concerns
2016DJU.S. Dollar Surges Broadly on Hawkish Fed
2016 NATIONAL AUSTRALIA BANK : NAB to launch API Developer Portal
2016 FlexiGroup Prices Private Placement of USD47.11 Million Class A1 Notes
2016 FlexiGroup Prices Private Placement of USD70.87 Million Class A1 Notes
More news
Sector news : Banks - NEC
03:52a Wells Fargo to merge international business with wholesale banking
12:09aDJJPMORGAN CHASE : J.P. Morgan CEO to Get $28 Million in 2016 Compensation -- 2nd ..
01/19DJJPMORGAN CHASE : J.P. Morgan CEO to Get $28 Million in 2016 Compensation -- Upda..
01/19DJJPMORGAN CHASE : J.P. Morgan CEO to Get $28 Million in 2016 Compensation
01/19DJU.K.'s May Meets With Wall Street Bank Chiefs--Update
More sector news : Banks - NEC
News from SeekingAlpha
01/18 The Banks Bull Market Has Created Many Short Opportunities In Asia
2016 A Look At ANZ Banking Group And Its Dividend
2016 National Australia Bank's Attractive 6% Dividend Yield
2016 INTERNATIONAL EQUITIES : The Case For Australia And The Case Against Latin Ameri..
2016 The Australian Market Is Looking Like A Bargain Now
Advertisement
Financials ( AUD)
Sales 2017 17 583 M
EBIT 2017 9 813 M
Net income 2017 6 568 M
Debt 2017 -
Yield 2017 6,10%
P/E ratio 2017 12,62
P/E ratio 2018 12,40
Capi. / Sales 2017 4,64x
Capi. / Sales 2018 4,47x
Capitalization 81 656 M
More Financials
Chart NATIONAL AUSTRALIA BANK LT
Duration : Period :
National Australia Bank Lt Technical Analysis Chart | NAB | AU000000NAB4 | 4-Traders
Full-screen chart
Technical analysis trends NATIONAL AUSTRALI...
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 30,3  AUD
Spread / Average Target -0,78%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Andrew Gregory Thorburn Group CEO, Director & Managing Director
Kenneth Ross Henry Chairman
Anthony J. Cahill Chief Operating Officer
Gary Lennon Group Executive-Finance
David Boyle Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NATIONAL AUSTRALIA BAN..0.42%61 527
JPMORGAN CHASE & CO.-2.72%300 360
WELLS FARGO & CO-1.52%272 560
INDUSTRIAL AND COML BA..2.72%231 262
BANK OF AMERICA CORP2.40%227 491
CHINA CONSTRUCTION BAN..3.31%188 918
More Results