Financial institutions continue to dominate new issue traffic in the corporate bond market, with National Bank of Canada upsizing an offering to $900-million on Wednesday.
National Bank launched an issue of five-year bonds that paid 4.03 per cent interest with a $500-million target for the offering. Strong investor demand for the debt, which pays a premium of 94 basis points to the comparable government of Canada bond, meant the issue was almost doubled in size by the time the marketing campaign was finished.
National Bank Financial led the offering for its parent bank.
CIBC, Bank of Montreal and Royal Bank of Canada have also staged large and well-received corporate debt issues in the past two weeks.