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 US$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.
“Investor response was immediate and fairly broad across different types of investors,” Joe Muscari, head of securitized portfolio management at Barclays, said about the bank's commercial paper deal. “Our support of SOFR with these issuances is just a recognition that this is the direction the industry is headed.”
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