Barclays has gained bondholder approval to convert four euro benchmarks from hard to soft bullet, and yesterday (Monday) published quorum numbers in what is understood to be a first and which comes just days after the ECB called for greater transparency. CBA has meanwhile launched a second round of consent solicitations.

Barclays Bank launched the consent solicitation exercise on 16 October, targeting four benchmarks totalling Eu5.8bn (£4.26bn), and announced yesterday that it had gained approval for the conversions.

It also published percentage figures for participation in each vote and the proportion of votes in favour:

XS0456178580 4% 2019: 82.17% quorum and 92.87% in favour

XS0491009659 4.25% 2022: 80.11% and 93.11%

XS0576797947 4% 2021: 91.24% and 97.92%

XS0616754007 3.625% 2016: 75.86% and 92.46%

Market participants said that they believe this to be a first in the wave of covered bond consent solicitations of the past year, although Monte dei Paschi di Siena and Banco Popolare published approval rates for their exercises, which converted MPS’s programme into a conditional-pass through structure and whereby Banco Popolare amended its documentation, resulting in a junking of its covered bonds.

“Let’s hope others follow Barclays’ lead here,” said Florian Eichert, head of covered bond and SSA research at Crédit Agricole, “as post-vote transparency was one area criticised by investors in a survey I did not too long ago.”

The European Central Bank on Thursday of last week raised concerns over transparency in consent solicitation exercises at a meeting with the technical issues working group of the European Covered Bond Council.

The ECB also called for bondholders who do not vote in favour of changes to be awarded fees that are now paid to those voting in favour, and today a large covered bond investor welcomed the central bank’s intervention.

“I’m happy that the ECB is now taking part in this discussion and maybe has the potential to change something,” he said.

Commonwealth Bank of Australian (CBA) is meanwhile seeking consent to convert six non-benchmarks totalling some Eu343m (A$523m) from hard bullets to soft bullets after having in September gained approval to do likewise on seven issues.

The six issues are: £50m FRN February 2017 XS0744839415 (Eu70.1m); Eu90m 3.035% May 2027 XS0782692940; Eu50m FRN October 2019 XS0839422408; $50m (Eu46.5m)FRN February 2018 XS0885738541; $50m FRN February 2018 XS0885739606; Eu40m FRN April 2021 XS1055029828.