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TD Swamped by Foreign Investor Demand for Canadian Bail-In Bonds

  • Foreign investors hold 39% of Canadian financial sector debt
  • TD deal is the biggest Canadian bail-in bond in euros so far
Views Of Bay Street Commuters As Canada Stocks Rise While Banks, Oil Rebound After U.S. Payrolls

Photographer: Brent Lewin/Bloomberg

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.