Nationwide seeks to replace Libor with Sonia

By Bill Thornhill
16 Oct 2019

Nationwide Building Society announced a consent solicitation on Wednesday with plans to convert two floating rate covered bonds to pay coupons based on Sonia rather than Libor, and is considering doing the same on all of its Libor-based bonds. The UK issuer followed Lloyds, which won plaudits from Moody’s for undertaking a similar exercise on a covered bond earlier this month.

Nationwide has asked investors to agree to an amendment of the transaction documents for its £1bn April 2023 and £750m January 2026, replacing the existing sterling Libor interest basis with a compounded daily Sonia interest basis.

It also said it is exploring “the potential transition of the remainder of its ...

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