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.
For further information please contact:
Deutsche Bank AG
Press & Media Relations
Phone: +44 20 7545 7790