Deutsche Bank announced today that its European Commercial Real Estate (CRE) Group has partnered with Kennedy Wilson Europe Real Estate II SCSp to originate its first loan benchmarked to Sterling Over Night Index Average (SONIA). The benchmark was used as an alternative to the London Inter-Bank Offered Rate (LIBOR).
The loan references a compounded average of SONIA set in arrears with a five business day lag. It marks not only Deutsche Bank and Kennedy Wilson’s first LIBOR alternative rate loan, but also one of the first adoptions of a loan referencing an average of overnight SONIA in the entire market. The loan refinances Kennedy Wilson’s acquisition of Ditton Park in West London.
Dino Paparelli, Head of Commercial Real Estate Europe, said: “This loan is the result of the application of Deutsche Bank’s structuring expertise to the CRE market’s need to transition to SONIA, and represents a collaboration between Deutsche Bank Commercial Real Estate and Kennedy Wilson.”
SONIA reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions. It is based on actual transactions and is published by the Bank of England.
Source: Deutsche Bank
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
🏆 The 2026 Global Markets Choice Awards are here! 🌍 Nominations are officially OPEN for the celebration of excellence in global capital markets trading & technology. Nominate below:
https://www.jotform.com/form/260086385121150
Delaware Life Insurance Company is becoming the first insurance carrier to offer an index that contains cryptocurrency, adding the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its fixed index annuity (FIA) portfolio.
As the digital assets industry pushes toward
Franklin Templeton is expanding its tokenized fund suite, signaling growing institutional demand for blockchain-based fund infrastructure and regulated investment products moving onchain. Read the full article below:
$50 billion in active ETF inflows helped fuel a record year for @BlackRock 's iShares business, as investors continue to lean into active strategies.
Related articles
-
There was growth across both credit and rates, and market share gains in high yield and municipal bonds.
-
Clients can manage multi-currency interest rate risk on ICE with greater capital efficiency.
-
The combined firm can serve clients from the first moments of price discovery through to the secondary market.
-
The $1.97 bln deal is meant to combine dealer and buy-side protocols, client relationships, and data.
-
Fixed income is the largest asset class in global finance.