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Nationwide on Tuesday became the third British financial institution to offer a three year floating rate note (FRN) in covered format this year. Looking to harness the remnants of the momentum it built in the market during its dual tranche euro deal at the end of last month, the building society's deal was more oversubscribed than the other two similar deals done this year -- from Abbey and Lloyds Bank -- which were priced in January.
The issuer took advantage of a strong market, with no competing supply to digest, to mandate BNP Paribas, HSBC, Royal Bank of Canada and Royal Bank of Scotland to run the triple-A rated deal on Tuesday morning.
Leads reported interest of around Pounds 1bn on initial price thoughts of mid/high 20s of basis points over Libor. The size was fixed at Pounds 750m on final pricing terms of 23bp over Libor, with no official pricing guidance having been...