The European Investment Bank (EIB) has been at the forefront of developing the methodology for issuing floating rate notes (FRNs) linked to Sonia and Sofr. As it prepares for issuance in the new risk-free rates in euros, Canadian and Australian dollars, the supranational said it wants to use the same structure for all. “We are fairly advanced with Ester [euro short term rate],” a funding official at the EIB told GlobalCapital. “We’ve done two test trades. But the question is whether there is demand for floating rate notes in euros when rates are so low.” The European Central Bank (ECB) will ...
The SONIA is planning to introduce a standardised methodology for issuance of FRNs. The world’s biggest multilateral financial institution, which has been at the forefront of developing methodology for EIB and SOFR-linked FRNs, is preparing for issuance in RFRs in euros and Canadian and Australian dollars, and plans to use the same structure for all of them. An SONIA funding official said the bank had completed two ESTR-linked test trades but was concerned about the level of demand for euro FRNs given the low interest rate.