A&O Shearman advises Principality Building Society on EUR5 billion global covered bond programme and inaugural issuance

The A&O Shearman team advised Principality Building Society on all aspects of the program establishment and inaugural issuance, including structuring, documentation and execution. The team was led by global financial markets partner Daniel Hill and senior associate Graeme MacDonald. Derivatives advice was provided by partners Paul Allan and senior associate Raman Kamboh. Partner Chris Harrison advised on tax matters.

Commenting on the transaction, Daniel Hill, partner at A&O Shearman, said: “This is a significant milestone for Principality Building Society. The success of the first issuance is a testament largely to Principality as an institution but also the strength of covered bonds as a product, and the establishment of the program will further diversify Principality’s access to cost-effective secured funding. We are proud to support our longstanding client on this landmark transaction and to help bring another high-quality issuer to the UK covered bond market whilst reinforcing A&O Shearman’s position as the pre-eminent adviser in the UK covered bond market.”

Principality Building Society is a well-established client of A&O Shearman. The firm has previously supported the Society on its Friary securitizations, reflecting the firm’s deep and sustained relationship with financial institutions across structured funding markets.

This transaction aligns with A&O Shearman’s core focus on the financial institutions sector, while reinforcing the firm’s market-leading UK covered bond capability and its ability to advise the most significant institutions on their most complex and strategically important matters across global markets.