Tuesday, 12 June 2012

Canada Housing Trust Reopens 5-Year Bond to Raise C$5 Bln

anada Housing Trust reopened its five-year bond maturing June 2017, aiming to raise 5 billion Canadian dollars (US$4.85 billion), according to people familiar with the matter.
Pricing of the offering is scheduled for Wednesday. The spread talk is for about 43 basis points over the Government of Canada 1.50% March 2017 benchmark. The bond carries a coupon of 2.05%.
Canada Housing Trust is part of Canada Mortgage and Housing Corp. (CMH.YY). It uses proceeds from the issue of Canada mortgage bonds to purchase mortgages packaged into National Housing Act mortgage-backed securities.