Wed Nov 12, 2008 6:03am EST
source: reuters

LONDON, Nov 12 (Reuters) - Building society Nationwide plans to raise 1.5 billion pounds ($2.3 billion) via a three-year government-backed bond, an official at one of the banks managing the sale said on Wednesday.

Guidance on the bond has been tightened to mid-swaps plus 18 basis points from initial guidance of mid-swaps plus around 20 basis points, the official said.

Nationwide is the fifth UK lender to make use of a government guarantee. Guidance on its deal was the same as a 1.4 billion sterling bond sold by Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz) on Monday.

Lloyds also raised 2.0 billion euros via a three-year bond at the same spread over mid-swaps.

Order books for the Nationwide deal have reached over 4 billion pounds, said IFR, a Thomson Reuters publication.

Barclays, HSBC, RBS and UBS are joint lead managers on the deal.

(Reporting by Natalie Harrison)