Nationwide PIBS 6.875%

I hold some 7.25% PIBS which has a call in 2021, so I'm interested in Nationwide's policy on PIBS and whether they are likely to call. There was a call for the 6.875% last month, but I cannot find out what happened. Does anyone know whether Nationwide did call or are they now continuing on the new post-call basis ? On their website Nationwide are not saying what their policy will be on calls for the future. What should we expect ?

Comments

  • Nothing as you say available on 6.875% Ticker code CEBA, although with no pricing updates since 15th Jan I suspect this issue was called.
    Odd, there is no public information indicating whether the issue was called.
    However since the Nationwide did a "Tender offer" a few years back, I suspect POB & POBA will be called. I hold the POBA (2024) PIBS, hence my interest
    I intend to hold until called, unless the yield gets under 2.5% (currently 4.38%)
  • The PIBS were called in November. Link to announcement below

    http://otp.investis.com/clients/uk/nationwide/rns/regulatory-story.aspx?cid=631&newsid=1208447

    Regulatory approval is needed to call all capital instruments like PIBS, based on there being sufficient capital remaining. So no financial institution can ever say definitively what its future action would be. However given the small size of the 7.25% PIBS (£60m) relative to the overall capital base there is unlikely to be any regulatory problems.

    Economically if they are not called they yield 5year Gilt (currently 0.80%) plus 3.88%, well below where any new issuance would yield.

    However on balance these are old instruments not designed for the current regulatory environment and it would be surprising if NW did not call.
  • ElmireToadface, many thanks for the information, much appreciated
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