(20 October 2011 – Australia) As the first major Australian bank to issue a covered bond once the government’s new changes come into place, National Australia Bank (NAB) is laying foundations to test the market.The bank, Australia’s fourth largest by market capitalisation, has mandated JPMorgan and Deutsche Bank to test the market’s appetite for the bonds.
It is expected a range of meetings will be carried out in Europe and US institutional investors.
A note from the NAB’s credit trading desk today said a covered bond could be issued ‘subject to market conditions’.
NAB would be the first bank to use the new debt instruments, which were approved in parliament last week.