Britannia Building Society has entered a foreign exchange swap to convert a portion of a recent EUR250 million (USD266.375 million) floating-rate offering into a sterling-denominated liability. Jeremy Helme, capital markets manager at Britannia in Leek, U.K., would not reveal the notional size of the swap. He said the purpose of the swap was to achieve a better funding rate. He would not disclose the exchange rate on the transaction.
Royal Bank of Scotland brought the transaction to Britannia and is the counterparty on the swap, as well as the underwriter on the offering. Helme said the U.K. thrift has a long-standing relationship with the firm. Helme added that Britannia does not have a minimum credit rating for its counterparties and it bases its selections on league table rankings. Helme would not disclose its funding needs for this year, but said it planned to remain active in the swap market.
