Amadeusz Juskowiak

National bank issues mortgagebacked securities

National Bank of Canada said it is issuing 25 mln dlrs worth of mortgagebacked securities recognized by the federal governments Canada Mortgage and Housing Corp

The bank said the issue is divided into two poolsone bearing annual interest of 834 pct and the other 858 pct with interest calculated semiannually and paid monthly

It said the securities are available in denominations of 5000 dlrs for a term of slightly less than five years

Underwriters are Levesque Beaubien Inc and McLeod Young Weir Ltd

National Bank said the issue is part of a program by Canada Mortgage and Housing introduced late last year which provides investors with high quality securities similar to government bonds but with a higher rate of return