ABP leads the way in switching FRNs to Sonia
The UK corporate bond market is getting its first taste of a trend that could dominate liability management in the coming years. Associated British Ports this week asked holders of its £65m 2022 floating rate note to consent to switching the bonds’ reference rate from Libor to Sonia. Alex Radford and Ross Lancaster report.
While small in size, ABP’s consent solicitation has started a transition that could end up involving more than £30bn of FRNs in the sterling market.The Bank of England wants the Sterling Overnight Index Average to have replaced Libor by January 1, 2022. Sonia — once the preserve of ...
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