‘Moving early’, ‘extensively educating investors’ and ‘ensuring fair treatment for all stakeholders’ were some of the qualities the participants of this year’s GlobalCapital survey associated with NatWest Markets’ efforts and expertise around the transition to LIBOR, resulting in NatWest winning GlobalCapital’s award for ‘Best bank for Covered Bond ALM and LIBOR transition management’.
GlobalCapital acknowledged NatWest Markets’ pioneering role in transitioning covered bond programmes to the new risk-free rate benchmark and managing their liability structures. In 2019, NatWest Markets were the first bank undertaking a LIBOR transition for a corporate, which served as a blueprint for subsequent transactions, such as for covered bonds, and has since been used for many transactions in the broader market.
The survey respondents in particular praised NatWest Markets’ search for fair treatment for all stakeholders, based on the principle of ‘no transfer of value’, meaning that no one gains, and no one loses from the transition – an ambition that included talking to and educating a diverse range of investors.
In addition, market participants cited NatWest Markets proactively supporting its customers, alongside their LIBOR transition, to review the profiles of their outstanding liabilities – often finding cheaper alternative sources of funding.
Al-Mustafa Mahmoud, Liability Management, Syndicate, Capital Markets, commented: “We are delighted that issuers and investors alike have shown their trust in us to help de-risk LIBOR transitions and ensuring a smooth and fair execution process that works for all participants. Thank you to all our customers who gave us the opportunity to work on these mandates.”
Jacob Gilbert, Director in Flow Syndicate, Capital Markets, added: “We are proud to have worked on a diverse range of LIBOR transitions and to have successfully helped our customers to identify potential for optimising their liability management at the same time. We’re also pleased that our efforts and commitment to educate our broad investor base about LIBOR has equally been recognised with this prestigious industry accolade.”