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. It is understood that Lloyds’ senior management have not yet decided whether to sell their stake or keep it on as part of an ongoing refinancing programme.