Associated British Ports defied sceptical observers this week and succeeded in persuading holders of a £65m floating rate note to switch its coupon to one set over Sonia — a global first. ABP managed to do it without paying investors a fee, potentially setting a precedent for others to follow. ABP is certainly likely to try again.
By pulling off the consent solicitation, managed by NatWest Markets, the UK ports group has set a template others could copy in the run-up to January 2022, when the Bank of England wants the Sterling Overnight Index Average to replace sterling Libor.
On May 20, ABP announced the solicitation