BMW this week became the first corporate issue to issue a floating rate note using Sonia as its benchmark. “Selecting a sterling-denominated transaction with Sonia as the reference rate was a logical decision,” said Fredrik Altmann, director of corporate finance, steering treasury centre at BMW Group. “The experiences from this transaction are going to be useful for a successful switch of reference rates in the US, from Libor ...
BMW has launched its inaugural SONIA-linked note, a £250m ($307m) deal that is expected to be followed shortly by other corporate deals as short-dated debt investors increasingly benchmark against the RFR.