- 21 February 2024CDOR transition – Upcoming events being held by Bank of Canada / CARR
With only 4 months to go until the cessation of CDOR, the LMA would like to invite members to two events being hosted by the Bank of Canada on the CDOR transition.
29 February, PwC/CARR live webinar on the CDOR transition (4:00pm GMT)
This session will be focused on lending and hedging, as well as the transition away from the Bankers’ Acceptance market. For more information and to access the live event, please register with PwC at https://event.webcasts.com/starthere.jsp?ei=1653571&tp_key=3ea818391d.
12 March, CDOR will end in less than 4 months: How financial markets are adapting to CORRA (in-person event)
The High Commission of Canada in the UK, in partnership with TMX and in collaboration with the CARR, will be hosting a panel discussion with industry experts including the CARR co-chairs, on the current transition from CDOR to CORRA.
Event details: 12 March 2024, 16:00 - 18:00 GMT, Canada House, Trafalgar Square, London SW1Y 5BJ
To register, please send your RSVP to christiane.lavallee@tmx.com. - 16 February 2024LMA publishes revised Schuldschein Loan Agreements (both German and English language)
The LMA is pleased to announce publication of revised Schuldschein Loan Agreements in German and English language.
As with the original versions, the revised LMA Schuldschein Loan Agreements are available in German and English language for both single borrower and single borrower with guarantor transaction structures.
The revisions have been considered and agreed by members of the original working party and reflect changes in law, feedback received from market participants since 2018, developments in relation to reference rate fall-back provisions and aligning the security over lenders’ rights clause to the relevant clause provided for in the German law precedent for syndicated facilities.
- 01 February 2024Strengthening EURIBOR fallbacks - LMA publishes updated Term €STR exposure draft and German law investment grade document
We have been part of the Euro RFR Working Group and have worked with the Group on strengthening fallbacks to EURIBOR.
On 1 February 2024, we published an updated version of our term €STR fallback exposure draft and related commentary following market feedback. As feedback received was generally supportive of the exposure draft, there have been no major changes. However, given the lack of market practice in the use of term €STR fallbacks, the LMA has not yet moved this document to recommended form. As a result, we need members to provide us with ongoing feedback from the provisions being used on transactions.
We have also updated the existing form of German law investment grade documentation to include a switch to compounded €STR upon a permanent cessation or non-representativeness of EURIBOR.
- 25 January 2024LMA publishes second edition of external review guidance
We are delighted to announce the publication of the second edition of the ‘External Review Guidance for Green, Social and Sustainability-linked Loans’, produced in collaboration with the APLMA and LSTA.
- 22 January 2024LMA updates Term SOFR commentary, as well as its developing markets and PXF facility agreements for RFRs
The LMA is pleased to have published updated versions of its developing markets and pre-export finance (PXF) facility agreements for the transition to risk-free rates (RFRs).
- 19 December 2023LMA publishes 'An Introduction to Green Loan Frameworks'
We are delighted to announce the publication of 'An Introduction to Green Loan Frameworks' (the Guide), an educational piece offering direction on green loan frameworks, as referenced in the February update of the Green Loan Principles (GLP).
- 07 December 2023LMA Publishes Duty of Care Agreement and Subordination Agreement for use on Real Estate Finance Transactions
The LMA is pleased to release two new documents for use on real estate finance transactions as part of its ongoing work to improve efficiency in the syndicated loan market.
- 08 November 2023LMA publishes joint guide 'Getting Started in Sustainable Finance' with ACT
We are delighted to announce the launch of our new introductory guide to sustainable finance, 'Getting Started in Sustainable Finance', produced in conjunction with the Association of Corporate Treasurers.
Intended for use by new entrants to the sustainable lending market, this guide describes the background to the emergence of sustainable lending, the global commitments driving the sustainability agenda, the range of products on offer and further resources at hand to help. - 03 November 2023Sustainable Finance for Social Housing
We are delighted to have co-authored an article with Trowers & Hamlins focussing on sustainable finance for social housing.
This article explores the potential benefits of the use of green, social, and sustainability-linked loans in the social housing sector, and focusses on some of the related challenges and opportunities for market participants.
- 02 November 2023LMA publishes South African law revised replacement of screen rate language to assist with JIBAR transition
We are pleased to have published a user guide and revised recommended form of replacement of screen rate clause for the LMA’s South African law documents (“SA revised replacement of screen rate clause”). The SA revised replacement of screen rate clause is based on the LMA’s existing 2018 revised replacement of screen rate clause (as updated) produced in the context of LIBOR transition. However, it also has regard to the work of the MPG on sample reference language for bilateral loans and reflects specifics of the South African market and JIBAR transition. In order to provide additional context, there are footnotes explaining any differences in the LMA clause and the MPG sample clause.
- 01 November 2023Sustainable Finance in the Mid-Market
We are delighted to have released an article today focussing on mid-market sustainable finance, following a Regional Early Evening Seminar which we co-hosted with Browne Jacobson on 13 September 2023.
- 31 October 2023LMA publishes updated CORRA Schedule and updated compounded TONA Schedule
We have published an updated CORRA Schedule which provides drafting for term CORRA in addition to compounded CORRA. Further, we have updated both our CORRA Schedule and TONA Schedule to reflect the updated definition of the “Daily Rate” in the updated IG compounded rate documents to provide for an interim fallback to a historic rate (prior to the application of a central bank rate plus any adjustment spread). This addresses what is sometimes referred to as the “Good Friday issue”.
- 26 October 2023LMA publishes exposure draft term €STR rate switch document for member feedback and updated IG compounded rate documentation
We are pleased to have published an exposure draft multicurrency term and revolving facilities agreement which incorporates term €STR fallbacks from EURIBOR. This is accompanied by a cover note providing a high-level summary of the fallback provisions set out in the document, and a separate commentary providing further detail of the provisions. Today, we have also published updated versions of our investment grade compounded rate facilities agreements, along with updated versions of the related term sheets and commentaries.
- 12 October 2023LMA Launches Sustainability-Linked Loan Term Sheet Provisions
The LMA has today published the term sheet to accompany its model provisions for sustainability-linked loans (SLLs). Contained in Part 8 of the Term Sheet for Leveraged Acquisition Finance Transactions (Term Sheet), the draft sustainability-linked loan terms can be inserted into the body of the Term Sheet or, as with the LMA's Draft Provisions for Sustainability-Linked Loans, be adapted for use in conjunction with the LMA's other recommended forms.
- 05 October 2023LMA Publishes Updated Best Practice Guide to Sustainability-Linked Leveraged Loans
The LMA, in conjunction with the European Leveraged Finance Association, is delighted to announce the publication of the updated Best Practice Guide to Sustainability-Linked Leveraged Loans (SLLLs, and the Guide).
- 27 September 2023Financing Sustainability in Shipping
We are delighted to have co-authored an article with Norton Rose Fulbright LLP focussing on financing sustainability in shipping.
Shipping plays a critical role in facilitating efficient global trade and underpins the international economy. There are, however, a number of social and environmental issues which the industry will have to address. This article explores how the sustainability-linked loan product can be, and already is being, used in the context of shipping financing transactions to address these issues and align with the direction of regulatory changes designed to stimulate a more efficient industry.
- 26 July 2023LMA.Automate Launches Bilateral Facility Agreement
LMA.Automate is delighted to have produced a new bilateral facility agreement, which has been made available to all subscribers on the platform. We believe this new template, being the first of its kind, will have a broad and compelling use case for all LMA.Automate subscribers, whether lenders or law firms. - 06 June 2023Financing a Sustainable Future for Aviation
The LMA is delighted to have co-authored an article with Norton Rose Fulbright LLP focussing on financing a sustainable future for the aviation industry.
Aviation is essential for global mobility, but is a ‘hard-to-abate’ sector, meaning it is prohibitively costly or impossible to transition to net zero with currently available abatement technology. This article explores how the sustainability-linked loan product can be, and already is being, used in the context of aviation financing transactions to catalyse the transition to a more sustainable future. - 25 May 2023LMA updates exposure draft term SOFR documentation to recommended form
We are pleased to have published our exposure draft term SOFR documentation as recommended form. The related term SOFR commentary has also been updated. The move to recommended form follows the increasing use in the market of the term SOFR provisions in the exposure drafts, market feedback received, the length of time since publication of the exposure drafts and the impending end-June 2023 deadline for US dollar LIBOR transition.
- 04 May 2023LMA publishes model provisions for sustainability-linked loans
We have published model provisions for sustainability-linked loans (SLLs). These model provisions look to provide a proposed form of draft SLL provisions for inserting into LMA loan documentation, which are aligned with our Sustainability-Linked Loan Principles and accompanying Guidance notes.
- 19 April 2023LMA publishes updated real estate finance intercreditor agreements
We have published updated versions of the LMA intercreditor agreement for real estate finance transactions, and the LMA intercreditor agreement for real estate finance transactions (contractual subordination only). Amendments have been made to these documents to reflect the transition to risk-free rates as well as the UK's withdrawal from the European Union.
- 18 April 2023LMA.Automate updates the Corporate Lending Facility Agreement to incorporate Term SOFR
We have today updated the corporate lending facility agreement available on the LMA.Automate platform to incorporate Term SOFR. This is part of the commitment to provide updated pre-automated LMA templates on the platform, including accommodation of the latest developments with respect to RFRs.
- 31 March 2023LMA publishes note on LMA facility documentation and the recommendations by the Euro Working Group on EURIBOR fallbacks
The LMA is pleased to have published a note focusing on LMA facility documentation and the recommendations published by the working group on euro risk-free rates on EURIBOR fallback trigger events and €STR-based EURIBOR fallback rates (Euro WG Recommendations). Particularly, the note outlines the current approach taken to the Euro WG Recommendations in the LMA's recommended forms of English law multicurrency facility documentation which reference risk-free reference rates from the outset and aims to help market participants understand how they can use existing LMA RFR documentation to implement robust fallbacks to EURIBOR.
- 28 February 2023LMA publishes compounded CORRA schedule
We are pleased to have published a schedule for compounded in-arrear CORRA. This has been produced in response to demand from some participants in the syndicated lending market to provide a suggested form of drafting for use of compounded in-arrear CORRA in conjunction with the structure for use of compounded in-arrear risk-free reference rates contained in the LMA's existing compounded rate facilities agreements. As it is designed to work with the structure in the compounded rate facilities agreement, the schedule is largely technical in nature and follows the form of the other currency schedules already contained in the compounded rate facilities agreements.
- 16 February 2023LMA publishes note on documentary implications for the replacement of TARGET2
We have released a note which outlines the documentary implications for the replacement of TARGET2. Market participants may be aware that TARGET2, the Trans-European Automated Real-time Gross Settlement Express Transfer payment system, is due to be succeeded in March 2023 by a new real-time gross settlement system (to be called T2). After T2 becomes operational, the LMA intends to update its facility documentation in due course to expressly reference the new system. In the meantime, the note sets out the changes that the LMA plans to adopt in its definitions of relevant documentation once T2 has become operational.
- 28 November 2022LMA releases guidance note on the Register of Overseas Entities regime
We have released a guidance note on the Register of Overseas Entities (ROE) regime. The ROE regime was established by the Economic Crime (Transparency and Enforcement) Act 2022 and came into force in two phases: on 1 August 2022 and 5 September 2022. The guidance note covers a range of key issues relating to the ROE regime and its impacts in the real estate finance (REF) context, including drafting for a new condition precedent to be included in LMA REF facility agreements that document deals to which the ROE regime applies.
- 17 November 2022Updates to the LMA Intercreditor Agreement for Leveraged Acquisition Finance Transactions
We have updated our Intercreditor Agreement for Leveraged Acquisition Finance Transactions (Senior/Mezzanine) (Compounded Rate/Term Rate) to fix a number of cross-references within the document. We have also produced a mark-up of this document against the LIBOR-referencing Intercreditor Agreement for Leveraged Acquisition Finance Transactions.
- 12 October 2022LMA publishes new and updated exposure draft term SOFR documentation for investment grade and developing markets
The LMA is pleased to have published a new exposure draft multicurrency term and revolving facilities agreement incorporating term SOFR (the IG Term SOFR Exposure Draft). The LMA has also released an updated expsoure draft single currency term and revolving facilities agreement incorporating term SOFR for use in developing markets jurisdictions, alongside an updated commentary (the Term SOFR Commentary), to reflect the IG Term SOFR Exposure Draft.
- 29 September 2022LMA publishes updated German law REF facility agreements
We are pleased to announce the publication of updated versions of our German Law Euro Term Facility Agreement for Real Estate Finance (REF) Multiproperty Investment Transactions (in both German and English). The latest updates to these documents follow changes to our primary documents to reflect the end of the Brexit transition period on 31st December 2020, as well as the removal of Reference Banks from the fallback waterfall.
- 26 September 2022Secondary trade confirmations now available on LMA.Automate platform
We have launched today automated LMA recommended form secondary trade confirmations on the LMA.Automate platform to support the secondary loan market. Subscribers will now be able to generate secondary trade confirmations from an automated template incorporating all versions and options available in the latest static versions of the LMA recommended forms. Secondary loan market participants should also note that the LMA recommended form confidentiality undertakings have already been automated and are available on the platform.
- 01 September 2022LMA publishes risk-free rate version of senior single currency term facility agreement for real estate finance multiproperty investment transactions (senior/mezzanine) with/without observation shift
The LMA is pleased to announce the publication of an updated version of its senior single currency term facility agreement for real estate finance multiproperty investment transactions (senior/mezzanine) which envisages the use of risk-free rates from the outset. A mark-up against the previous LIBOR referencing document has also been published at the same time so that members can see the changes that have been made.
- 10 August 2022LMA publishes a model form CRI policy document
The LMA, with the assistance of the Lloyd's Market Association ("Lloyd's") and the International Underwriting Association ("IUA"), has published a model form of Credit Risk Insurance Policy ("CRI Policy"). The CRI Policy is drafted: for the purposes of insuring single borrower credit risk arising from a loan agreement; and with a view to the CRR requirements for unfunded credit protection.
The CRI Policy was put together by an experienced working party, consisting of representatives from law firms, banks, brokers, insurers, Lloyd's and the IUA and was based on their first-hand experiences of undertaking such transactions.
- 20 June 2022Update to REF Security Agreements
On 20 June 2022, we published updates to our Real Estate Finance (REF) Investment Security Agreement, REF Development Security Agreement and REF Shareholder Security Agreement (the Security Agreements) following the enactment of the National Security and Investment Act 2021 (the NSIA).
The aim of the updates to the Security Agreements is to prevent finance parties from inadvertently finding themselves liable under the NSIA by blocking the automatic transfer of voting rights from the chargor to the security agent in circumstances where such transfer would otherwise amount to a notifiable acquisition under the NSIA. The relevant updates can be found in Clause 5.4 (Voting rights) of the Security Agreements. The accompanying user guides have also been updated to provide an explanation of the changes to the Security Agreements.
- 08 June 2022LMA.Automate has published an updated version of the Corporate Lending Facility Agreement and associated Term Sheet to the platform
We are pleased to announce that, following detailed feedback received from our existing subscribers, we have today added an updated version of the corporate lending facility agreement and associated term sheet to the growing library of documents available on the LMA.Automate platform.
- 28 April 2022LMA publishes revised versions of real estate investment property facility agreement, development property facility agreement and associated term sheets which envisage the use of RFRs from the outset
We have published revised versions of our real estate investment property facility agreement, development property facility agreement and associated term sheets which envisage the use of RFRs from the outset. Cumulative mark-ups against the previous LIBOR referencing documents have also been published so that members may see the changes which have been made.
- 11 April 2022LMA publishes security agreement and associated users guide for use in various common law African jurisdictions
We have published a security agreement and associated users guide for use in various common law African jurisdictions (these being Kenya, Nigeria, Tanzania, Uganda and Zambia) in the hopes that this will facilitate standardisation in cross border African deals by introducing a common framework and boilerplate across different legal systems.
- 18 February 2022LMA publishes revised Trade Confirmations for Secondary Trading
The LMA is pleased to have published revised Trade Confirmations with an effective date of 18 February 2022. The revised Trade Confirmations incorporate amended wording in Other Terms of Trade tick-boxes for the exclusion of CAS and inclusion of zero floor options where Delayed Settlement Compensation applies. The revised Trade Confirmations (and amended wording for the tick-boxes) has not changed the position on these commercial issues and whether or not they apply to a particular trade must continue to be agreed by the parties at the time of trade. The Standard Terms & Conditions dated 4 January 2022 also remain unchanged.
- 21 January 2022LMA publishes compounded TONA schedule, the French language version of the RFR French law document, an updated designated entity clause and updated RFR destination table
The LMA is pleased to have published further documentation to assist the market with the transition to RFRs including a compounded TONA schedule, the French language version of the RFR French law document, an updated designated entity clause and updated RFR destination table.
- 04 January 2022LMA publishes revised Secondary Debt Trading documentation (effective date of 4th January 2022) to assist secondary loan market with LIBOR transition
The LMA is pleased to have published revised Standard Terms and Conditions, Trade Confirmations and forms of Participation Agreement to the Secondary Trading Documentation page under the LMA Documentation Index with an effective date of 4 January 2022. The revised Standard Terms and Conditions will therefore apply to all trades with a Trade Date on or after 4 January 2022 and will replace the previously published version.
- 22 December 2021LMA publishes RFR Destination Table and RFR versions of its German, Spanish and French law documentation
The LMA has published its RFR Destination Table, which is intended to assist members in identifying the LMA RFR-referencing document which is most directly comparable to any given LMA LIBOR-referencing document. Where there is no direct equivalent, the table sets out the RFR-referencing document(s) which is/are most closely related and may be most helpful. The LMA has also published versions of the existing suite of German, Spanish and French law investment grade documentation based on compounded RFRs from the outset in place of LIBOR along with accompanying updated user guides.
- 15 December 2021LMA publishes leveraged RFR suite of documentation and updated compounded rate facilities commentary to assist the market with LIBOR transition
The LMA has published versions of the existing suite of leveraged documentation, including facility and intercreditor agreements, based on compounded RFRs from the outset. Each facility agreement provides the option for users to select observation shift or not (rather than two versions being produced of each agreement). The commentary to the LMA compounded rate facilities agreements has also been updated.
- 01 November 2021LMA publishes updated Exposure Draft of Standard Terms and Conditions for secondary debt trading together with accompanying documentation to assist the secondary loan market with LIBOR transition
In line with its core aim of improving liquidity in secondary syndicated loan markets, the LMA is pleased to have published an updated Exposure Draft of its Standard Terms and Conditions for secondary debt trading together with an accompanying Explanatory Note (and Example Settlement Calculations) and updated Trade Confirmations.
- 27 October 2021LMA publishes term SOFR exposure draft and commentary for use in developing markets
The LMA is pleased to have published an exposure draft single currency term and revolving facilities agreement incorporating term SOFR for use in developing markets jurisdictions alongside a commentary.
- 25 October 2021Corporate Lending Facility Agreement now available on LMA.Automate platform
LMA.Automate is pleased to announce the addition of an automated corporate facility template to its existing suite of documents. Whilst also reflecting the transition from LIBOR to RFRs, this corporate facility template introduces more optionality than the current LMA IG facility documentation, facilitating a broader set of corporate lending scenarios.
- 29 September 2021LMA publishes a new recommended form of borrowing base facility agreement
The LMA is pleased to have published a recommended form of revolving facilities agreement for use in borrowing base transactions (the "Borrowing Base Finance Document"). A user guide has been published alongside the Borrowing Base Finance Document.
- 03 August 2021LMA publishes practical guidance for the documentary amendment process when transitioning legacy LIBOR facilities
The LMA is pleased to have published a note providing practical guidance for the documentary amendment process for parties transitioning legacy LIBOR syndicated loan facilities to compounded risk-free reference rates (RFRs).
- 28 July 2021Revised version of Single Currency Term Facility Agreement for Real Estate Finance Multiproperty Investment Transactions with/without Observation Shift
Following publication on 19 July 2021, the LMA has today published a revised version of its Single Currency Term Facility Agreement for Real Estate Finance Multiproperty Investment Transactions with/without Observation Shift (the REF RFR Facility Agreement).
- 19 July 2021LMA publishes further RFR documentation to assist the market with LIBOR transition
The LMA is pleased to have published a real estate finance facility agreement for investment property transactions to facilitate the syndicated loan market in transitioning away from the use of LIBOR to compounded risk-free rates ("RFRs").
- 22 June 2021LMA Publishes Exposure Draft Trade Confirmations
The LMA is pleased to have published Exposure Drafts of LMA Trade Confirmation (Claims) and LMA Trade Confirmation (Risk Participation).
- 21 June 2021Launch of LMA.Automate, a document automation platform for syndicated loan templates
LMA.Automate, a wholly owned subsidiary of the Loan Market Association, has today launched a platform in respect of the automation of certain LMA recommended form documents, as well as other ancillary services. The platform aims to offer an end-to-end solution with a focus on the automation of LMA template documents, but with the functionality to cater for the entire document lifecycle, including negotiation and collaboration, documentation execution and comprehensive data extraction and reporting.
- 11 June 2021LMA publishes Exposure Draft of Standard Terms and Conditions for secondary debt trading together with accompanying documentation to assist the secondary loan market with LIBOR transition
The LMA is pleased to have published an Exposure Draft of its Standard Terms and Conditions for secondary debt trading (the 'Exposure Draft') together with an accompanying Explanatory Note and updated Trade Confirmation (Bank Debt). The Exposure Draft, Explanatory Note and updated Trade Confirmation have been produced after engagement and feedback from market participants to facilitate secondary loan market trading as the syndicated loan market transitions away from the use of LIBOR to compounded risk-free rates.
- 04 June 2021LMA publishes updated reference rate selection agreement for use in legacy transactions
The LMA is pleased to have published today an updated version of the reference rate selection agreement for use in legacy transactions transitioning from LIBOR to risk-free rates. The reference rate selection agreement has also been published as a recommended form following a process of market feedback (which has been open since October 2019).
- 04 June 2021New ESG Diligence Questionnaire Published
We are delighted to announce the publication of our first ESG Diligence Questionnaire: "ESG Diligence Questionnaire – Asset Manager". This Questionnaire was developed together with the LSTA and ELFA and our respective working groups and is designed to be completed by asset managers and shared with investors.
- 28 May 2021LMA publishes further RFR documentation to assist the market with LIBOR transition
The LMA is pleased to have published a further suite of documentation to facilitate the syndicated loan market in transitioning away from the use of LIBOR to compounded risk-free rates ("RFRs").
- 27 May 2021The LMA, APLMA and LSTA publish updated Sustainability Linked Loan Principles and accompanying guidance
Following the launch of the Sustainability Linked Loan Principles (SLLP) in March 2019, there has been a staggering increase in the volume of sustainability linked loans seen across the syndicated loan market. The APLMA, LMA and LSTA have therefore taken this opportunity to reflect on recent market trends and are delighted to announce the publication of a revised version of the SLLP and accompanying Guidance on Sustainability Linked Loan Principles (SLLP Guidance).
- 13 April 2021The LMA, APLMA and LSTA publish Social Loan Principles
The LMA, APLMA and LSTA today announced the publication of the Social Loan Principles (SLP). The SLP aim to create a high-level framework of market standards and guidelines, providing a consistent methodology for use across the social loan market, whilst allowing the loan product to retain its flexibility and preserving the integrity of the social loan market while it develops.
- 30 March 2021LMA updates exposure draft RFR documentation to recommended forms and publishes single currency RFR facilities agreements
The LMA is pleased to have published its exposure draft RFR documentation as recommended forms. The documentation has also been updated to reflect, amongst other things, the recent updates to the £RFR Working Group's conventions supporting materials. The LMA has also published two new recommended form single currency RFR facilities agreements and updated the RFR Terms and notes outlining LIBOR transition considerations for the LMA's wider suite of documentation.