The Co-operative Bank yesterday launched an any-and-all tender for its only outstanding covered bond, a £600m 4.75% November 2021 issue.

The £600m (€655m) covered bond (ISIN XS0703266477) was launched in 2011.

The UK financial institution said it is conducting the offer to provide bondholders the opportunity to have their covered bonds repurchased, whilst also optimising its liability base and future interest expense.

The purchase spread is 75bp over the Gilt and the offer runs until Thursday (1 October).

The Co-op is the latest of several issuers to have launched tenders this year, Nationwide having most recently completed the largest, although others have typically committed to leave €500m-equivalent outstanding for LCR and index eligibility purposes.