Lloyds and Santander UK on 18 December won approval to switch the relevant basis for outstanding dollar and sterling benchmarks, respectively, to Sonia and SOFR, while BPI has gained consent to switch to an EU-based common representative ahead of the end of the Brexit transition period.

Santander UK gained bondholder approval to convert two sterling floating rate notes from a Libor to a Sonia basis, and similarly to change the basis for the extension period of two fixed rate sterling covered bonds. Quorums were achieved at the first scheduled meetings and the approval rates ranged from 99.03% to 100%.

The four issues constitute all Santander UK’s sterling covered bonds that did not already reference Sonia but mature after the end of 2021, the cut-off date for the switch from Libor. The fixed rate issues are a £1bn (€1.12bn) 5.75% March 2026 (ISIN XS0596191360) and a £750m 5.25% February 2029 (XS0746621704), and the FRNs a £75m March 2027 (XS0761325009) and a £1bn November 2022 (XS1719070390).

At adjourned meetings, Lloyds Bank gained unanimous consent from bondholders voting to change the basis for potential extension periods of its $750m (£570m, €632m) 3.375% November 2021 (ISIN XS1907146671) and $1bn 5.125% July 2022 soft bullet covered bonds from US dollar Libor to SOFR. Initial meetings on 4 December were inquorate.

On Monday of last week (28 December), Banco BPI became the third Portuguese issuer to change the common representative of the bondholders from BNP Paribas Trust Corporation UK Limited to Spanish company Bondholders SL. Under Portuguese obrigações hipotecárias (OH) legislation, the common representative must be an entity authorised to perform investor representation services in an EU member state.

BPI achieved success at the first time of asking, with 100% approval. Banco Santander Totta and Novo Banco had already made the same switch in company.