Following its debut £750m Sonia-linked covered bond issue in September, Lloyds has printed the first securitization linked to Sterling Overnight Index Average (Sonia) – Elland RMBS. The deal more than doubles the outstanding issuance in the format. The transaction —four triple-A tranches and a junior note amounting to £7.6bn – is retained by the bank and paves the way for other issuers to follow as Libor is gradually replaced with a suitable alternative before the end of 2021. And while investor-placed Sonia-linked covered bond issuance ...
Lloyds has originated the first Sonia-linked securitisation. The Elland RMBS was issued in four triple-A tranches and a junior note totalling £7.6bn ($9.6bn) and has been retained by the bank. The deal, which comes three months after the bank issued its first Sonia-linked covered bond, more than doubled the outstanding issuance in the format and paves the way for other issuers to follow.