The transaction, which will help to fund new lending, is being offered through the Silverstone master trust and will be backed by first-charge, owner-occupier loans originated by the building society.
The average loan to value of the loans is 60% and the average loan size is £95,885. It is being offered across three tranches – $1bn in three-year notes, $1bn in five-year notes and £200m in five-year notes.
Nationwide is the sole arranger of the transaction and it has appointed Barclays, Citigroup, Deutsche Bank and JP Morgan as joint lead managers. Standard & Poor’s has given the transaction a preliminary AAA rating.
The deal represents the sixth issue from the Silverstone master trust since its inaugural issuance in 2008 and S&P says the trust collateral totals £27bn.
In January, two of Nationwide’s high-street rivals launched bonds backed by mortgages, with Santander setting up a £2.97bn RMBS and Barclays offering a £750m covered bond.
Ray Boulger, senior technical manager at John Charcol, says: “The fact Nationwide is offering the majority of this transaction in dollars is an indication of where the investors are based.”