Yorkshire Building Society today announced a tender offer at 82% of par plus accrued interest for its 5.649 perpetual bonds, which could be called in March 2019. The 82p/shr offer compares to the mid-market price of 71p/shr prior to the announcement. This provides good evidence that some of the smaller, conservative borrowers are prepared to call or offer on perpetual bonds; in this case seven years in advance of the call date. I reckon it makes the discount to par on the CO-OP 5.5555 perpetual (link) appear even better value, especially when the potential return on equity through ETX Capital could be so high.
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