Singapore’s United Overseas Bank (UOB) sold an inaugural £350m five year FRN covered bond today (Wednesday), attracting over £425m of orders while pricing in line with preceding trades from issuers more established in the currency. OCBC has mandated a euro benchmark.

The deal is first public sterling covered bond issuance from Asia. Since the opening of the Singaporean market in July 2015, supply has been limited to US dollars, euros and Australian dollars.

The Singaporean issuer announced a mandate last week for a UK roadshow ahead of a potential sterling FRN with an intermediate maturity, via leads Credit Suisse, HSBC and UOB.

Following the completion of the roadshow yesterday (Tuesday), a five year deal was launched this morning with initial guidance of the three month Libor plus 26bp area. The leads later announced that the books had surpassed £400m.

The spread was subsequently fixed at 24bp with books in excess of £425m, including £10m joint lead manager interest, for a £350m (EUR396m, SGD645m) deal.

UOB’s deal is the eighth sizeable public sterling covered bond of the year, but the first in almost a month. The last was a £500m five year FRN for Toronto-Dominion, which was priced at 22bp over three month Libor – the same spread at which domestic issuer Barclays Bank had priced a £1.25bn five year FRN on 2 January. On 11 January, Australia’s Westpac priced a EUR500m five year FRN at 24bp.

Bankers away from the deal said it was impressive that the deal had been priced in line with Westpac and close to the recent trades for Barclays and Toronto-Dominion – all more established issuers in the sterling market.

UOB’s last benchmark covered bond was a EUR500m seven year on 9 January.

Oversea Chinese Banking Corporation (OCBC) has meanwhile mandated Barclays, BNP Paribas, NordLB, OCBC and UniCredit for a five year euro benchmark. The Regs S offering, announced this afternoon, is set for launch in the near future.

It will be OCBC’s third euro benchmark covered bond, after two EUR500m issues last year.