Libor Challenger Embraced in Debut Commercial Paper Transaction
- Barclays sells $525 million of debt linked to new benchmark
- Fannie Mae, World Bank have already done deals based on SOFR
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Barclays Plc has become the first bank to issue commercial paper tied to the new benchmark that’s been designed to succeed Libor in the dollar funding market.
The British lender on Friday sold $525 million of the short-term debt, which will be linked to the new secured overnight financing rate, or SOFR, according to a Barclays spokeswoman. The borrowings took place via its flagship asset-backed commercial paper conduit, Sheffield Receivables Corp.