Nordea Bank Finland achieved the largest covered bond and order book seen so far this year with a Eu2.25bn long five year mortgage backed issue pieced at 65bp over mid-swaps  yesterday (Tuesday).

Leads Barclays, Bank of America Merrill Lynch, Nordea Markets, RBS and UniCredit built a book of Eu3.1bn, comprising over 150 accounts.

“It’s the largest order book of the year and so far the largest deal,” said a DCM official at one of the leads.

A syndicate official away from the leads said the transaction had gone well because Nordea is a strong issuer.

“It’s one of the best in Europe, so this was no surprise,” he said. “Nordea covered bonds always go well.”

The DCM official noted that book building was very quick.

“There was overwhelming demand, very much driven by German accounts,” she said.

Germany and Austria took 55%, the Nordics 25%, France 7%, the UK and Ireland 4%, Asia and the Middle East 2%, central and eastern Europe 2%, and other Europe 3%.

The trade was priced off Nordea’s curve and a recent DNB Boligkreditt transaction. Norwegian issuer DNB Boligkreditt launched a Eu2bn 5.25 year on 4 January at 65bp over, which was trading at 60bp-61bp in the secondary market yesterday.

“The Nordea trade has performed nicely in the market,” said the DCM official. “It’s tightened.”

Fund managers were allocated 28%, banks 32%, central banks 24%, insurance companies and pension funds 14%, and others 2%.

Nordea Bank Finland’s last euro benchmark was a Eu1.5bn five year deal priced at 40bp over mid-swaps on 26 August.