EIB shrugs off term RFR worries with Sonia bond plan

Issuer to use daily compounded, backward-looking rate with time lag for sterling benchmark

EIB Group headquarters
Photo: EIB

The European Investment Bank is preparing to wean the sterling primary bond market off tainted Libor benchmarks with plans for a floating rate note linked to the Sterling Overnight Index Average (Sonia). The trade, which is expected to price in the coming days, is being viewed as a possible blueprint for how future bond issues will be structured against risk-free overnight rates that lack a forward term structure.

The EIB, the second biggest issuer of sterling debt after the UK’s Debt

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: