EIB floater hints at evolution of Sofr coupons

European Investment Bank EIB building from their media gallery 230x150.jpg
By Mike Turner
10 Jun 2019

European Investment Bank is out with a $1bn three year floating rate note linked to the secured overnight financing rate (Sofr) with a novel coupon structure, though bankers off the deal say it looks cheap.

Triple A-rated EIB is marketing the deal at compounded Sofr plus 30bp.

“It looks pretty cheap compared to fixed rate dollars,” said one syndicate banker off the deal, echoing the sentiment of a rival banker. “But it makes sense as they’re trying to build out the Sofr curve so ...

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