Lloyds wins consent to flip £1bn covered bond to Sonia
The conversion, backed by 99.84% of bondholders, marks another milestone in the Libor transition
Lloyds Bank received overwhelming support from debtholders to switch the reference rate on a £1 billion ($1.26 billion) covered bond maturing in 2023 from Libor to Sonia.
The change, which was put to noteholders at a meeting on October 7, passed with 99.84% of eligible holders voting in favour. The first Sonia-linked coupons will pay out in March 2020.
At £1 billion, the conversion of Lloyds’ covered bond was widely seen as a test case for transitioning outstanding debt with a large number of
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