Toronto Dominion Bank issues a EUR 5bn dual tranche covered bond

The issuance was met by a strong positive reaction from the market. Crédit Agricole CIB was mandated as Joint Bookrunner on both tranches and the hedge provider on the full EUR 1.5bn 7-year tranche.
 
This transaction was the issuer’s first appearance on the secured format since the beginning of the year. The deal revamped the EUR covered bonds markets while supply from Canadian issuers was very limited since the beginning of the year.

By opting for a short and a relatively long-dated fixed tranche, the issuer benefited from the full audience of investors minimizing the risk of cannibalization between the two tranches.

Furthermore, the relative scarcity value behind the issuer jurisdiction also paved the way for a warm market reception.

The issuance became the largest Euro-denominated covered bonds issue ever, with EUR5bn in total raised on the market. It was also the biggest single tranche ever recorded with EUR3.5bn for the short tranche.