Skipton Building Society sold its first euro-denominated covered bond today (Tuesday), a EUR500m five year that, with a final book of EUR800m, won the biggest book of any euro covered bond so far this week.

Leads Barclays, HSBC, LBBW and UBS launched the EUR500m no-grow five year issue with guidance of the 20bp over mid-swaps area this morning. After around one hour and 30 minutes, the leads announced that books were above EUR500m, excluding joint lead manager interest.

Guidance was subsequently revised to the 17bp area with books above EUR750m, excluding JLMs. The spread was then fixed at 16bp with books closing “well above” EUR800m, excluding JLMs.

“It’s a good result and, looking just at the size of the book, probably the most convincing trade of the week so far,” said a syndicate banker away from the leads.

The final spread incorporates a new issue premium of around 6bp, bankers said, based on the euro curves of comparable UK building societies.

The deal follows a three day roadshow that ended on Friday.

The new issue is Skipton Building Society’s second public covered bond, following an inaugural £400m five year FRN in April. The UK issuer updated a dormant covered bond programme last year to make it compliant with the Financial Conduct Authority’s regulated covered bond regime. The programme had previously been used for retained issuance.