HBOS launched the first U.K. RMBS issue since the credit crisis erupted last summer.
The bank said in a statement that it had successfully placed the £500 million ($983.2 million) prime U.K. RMBS deal from its Permanent Master trust structure.
Although the deal is small compared to past issues from the HBOS program, interest in the paper was encouraging.
An HBOS spokesperson said the deal was launched on the back of enquiries HBOS received from a number of investors and was consequently pre-placed and sold to a small group of investors that were divided equally between banks and insurance companies.
The triple-A rated bonds have an average maturity of 3.64 years and were offered at 85 basis points. Lead managers on the sale are HBOS, Citigroup and UBS.