European Bank for Reconstruction and Development EBRD

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The European Bank for Reconstruction and Development took a huge order book for its Sonia-linked floating rate note on Wednesday, which introduced a new coupon calculation methodology for the sterling risk free rate. But market participants away from the deal said the demand did not reflect broad approval of the new format among investors.

Saudi Arabian food and beverage producer Almarai has secured a $100m loan from the European Bank for Reconstruction and Development (EBRD) to support expansion in Egypt and Jordan.

The European Bank for Reconstruction and Development will be introducing a new coupon calculation methodology for Sonia-linked floating rate notes with its deal on Wednesday. The trade will use the structure that it pioneered for its Sofr debut last summer. The leads say this new format will be helpful should Sonia move towards a single index, like Sofr will in March. But some bankers away from the deal are unconvinced that the new method will appeal to investors.

EU member states plan to agree on a common candidate to succeed the UK’s Suma Chakrabarti as president of the European Bank for Reconstruction and Development after his term ends in May. France, Italy and Poland have each put a name forward.

BMW issued the largest unsecured MTN of the year on Wednesday — outstripped in size only by a €700m privately placed covered bond from UniCredit, according to Dealogic. The trade was BMW’s largest since 2016.

We have more multilateral development banks than ever before. They perform an invaluable job in a challenging and ever-changing world, but as they expand, and as new MDBs emerge, a fear is growing that they are being used as political tools by sovereign shareholders, keen to promote their own interests around the world. By Elliot Wilson

European finance ministers are not keen on setting up a new development bank from scratch. They will instead start technical work on how to better streamline the operations outside the EU of the European Investment Bank and the European Bank for Reconstruction and Development.

International lenders and the Loan Market Association (LMA) are worried about emerging markets’ nonchalance towards the end of Libor in 2021. Fears are mounting that local lenders, in particular, those in Africa, will be “hit by a juggernaut” when the benchmark rate is discontinued, writes Mariam Meskin.

The European Bank for Reconstruction and Development (EBRD) focused “on price over size” but achieved both when it brought its third Sonia-linked floating rate note (FRN) to the market this week, according to one of its leads.

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The European Bank for Reconstruction and Development came to market on Wednesday with its fourth Sonia-based floater.