Toronto-Dominion Bank raked in orders more than three times the offered size for the largest euro-denominated bail-in bond out of Canada yet in a fresh sign of the strong international investor demand for debt issued by the country’s lenders.
Canada’s second largest bank by assets received more than 4.5 billion euros ($5.2 billion) of orders for 1.5 billion euros of five-year bonds, which were marketed in the area of 40 basis points above the mid-swaps rate, according to data compiled by Bloomberg. The deal was priced at a spread of 38 basis points.
International investors held C$735.8 billion, or 39 percent, of debt securities issued by Canadian financial corporations, according to Statistics Canada as of the end of the year. Non-resident investors have added C$279.8 billion of the securities since the start of 2015, while domestic investors, which held C$1.17 trillion of the debt at the end of the year, increased their holdings in the same period by C$83.2 billion.
Foreign Interest
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TD arranged the deal along with BNP Paribas, Goldman Sachs Group Inc., JPMorgan Chase & Co., Citigroup Inc. and Credit Suisse Group AG. Before TD’s deal, other Canadian banks including Bank of Nova Scotia, Royal Bank of Canada, Bank of Montreal priced smaller senior bonds.
— With assistance by Maciej Onoszko
