Win-win for Barclays’ first sterling deal

Barclays Bank opened books for its inaugural sterling benchmark covered bond on Thursday, a 10 year deal that is being marketed at Gilts plus 215-220bp. After less than two hours the book had grown to £1bn, suggesting it has received a very good reception. The funding represents a dual win for the borrower as, not only does it diversify its investor base, but it is also cheaper than euros.