Lloyds takes sterling covered funding in size

By Bill Thornhill
09 May 2019

Lloyds Bank found good demand for its third visit to the sterling covered bond market in the last eight months and the largest Sonia linked bond of that type issued this year. Attractive relative value and a prospective supply slowdown propelled demand, enabling the deal to be priced flat to fair value.

Joint leads Barclays, Lloyds, RBC Capital Markets and TD Securities opened order books on Thursday for a benchmark sized Aaa/—/AAA rated trade due May 2024 with initial guidance of 62bp over Sonia. 

After one hour the order book stood at £1.25bn and after little more ...

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