HBOS Issues 2nd UK Covered Bond
Halifax Bank of Scotland (HBOS) is issuing its second UK covered bond. The benchmark issue will have a size of a minimum € 2 billion and a maturity of 10 years. Launch is expected shortly subject to market conditions. The transaction will be jointly lead managed by Citigroup, Goldman Sachs and WestLB AG. All managing banks will be committed to the traditional market making in the bond and repo market. The issue is expected to be rated Aaa (Moody´s) and AAA (S&P and Fitch).
HBOS´ new 10-year benchmark issue is part of a multi-currency covered bond programme with a size of € 14 billion. The covered bonds, which are collateralised by a pool of prime UK residential mortgages, are issued by HBOS Treasury Services and are unconditionally guaranteed on a joint and several basis by HBOS and the Bank of Scotland. HBOS plc is the biggest mortgage lender in the UK with a current market share of 22.4%.