Latest News

LMA updates exposure draft term SOFR documentation to recommended form

On 25 May 2023, the LMA published its 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. Note that, as with all LMA recommended forms, these are non-binding and parties are free to depart from their terms.

In respect of fallbacks to term SOFR, the options presented remain suggestions only given some ongoing discussions in the market. However, market participants are reminded of recent regulatory statements, including from the Financial Stability Board, that contracts referencing term RFRs need to have robust fallbacks in place. Market participants are also reminded that cost of funds is only included in the recommended form term SOFR documentation as a potential option for an ultimate fallback. Cost of funds is not designed to be used as a primary fallback given that it is not a robust, scalable or workable long-term fallback.    

LMA releases three new RFR e-learning modules on compounded rates

On 25 May 2023, we published three new modules within our 'Transition to RFRs' e-learning course.

The new modules (building upon two prior modules released in August 2022) introduce Compounded Risk-Free Rates (RFRs) and the practical implications for calculating loan facilities' interest. The additional modules include:

Compounded RFRs – The Basics: this module provides a high level overview of Compounded RFRs, introducing the basics principles and building blocks that underpin Compounded RFRs.

Compounded RFRs – Observation Shift: this module explains Compounded RFRs in further detail, highlighting the difference between loan facilities with and without an Observation Shift using worked examples.

Compounded RFRs – CCR & NCCR: this module introduces, with worked examples, the concepts of Cumulative Compounded Rate (CCR) and Non-cumulative Compounded Rate (NCCR).

Please note that these modules are intended to be completed in the order noted above and steadily build upon the principles and building block introduced in prior modules.

Click here to enrol.

LMA publishes model provisions for sustainability-linked loans

On 4 May 2023, we 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.

Put together by an experienced working party of financial institutions and law firms active in sustainable finance, these model provisions seek to reflect current market practice, and provide a vital tool to protect the integrity of the SLL market by providing a basic drafting framework to assist parties in the negotiation of the document.  The model provisions also include extensive drafting notes setting out points for parties to consider when undertaking a SLL transaction.


LMA On Demand Webinar

Watch our webinar, first streamed live on 17 May, on "Transition from IBOR in the loan market; where are we now" presented by Kam Hessling and Keith Taylor. It covers: recent developments, including the FCA announcement on synthetic USD LIBOR and ARRC announcement on term SOFR use cases; where we are now on loan market transition; developments and timelines in other key IBOR jurisdictions; and what loan market participants need to be doing with limited time left. The webinar closed with a Q&A, with Keith and Kam answering questions sent in from delegates during the live transmission.

LMA publishes results of its REF Survey

As part of the run up to our 9th real estate finance conference being held in London , we surveyed our membership on the opportunities and challenges facing real estate finance markets. The survey aimed to determine where the key investment opportunities and challenges lay, which sectors and asset classes were most likely to drive future growth and where future lending would most likely be sourced from.

The results were collected anonymously and represent the personal views of professionals actively working in the real estate finance market.

Recent Activity

Documentation (25 May 2023)

LMA publishes its exposure draft term SOFR documentation as recommended form as well as an updated term SOFR commentary. 

Documentation (4 May 2023)

LMA publishes model provisions for sustainability-linked loans.

Regulation (28 April 2023)

LMA responds to Finance Denmark consultation regarding a recommendation for a fallback rate for CIBOR.

Documentation (19 April 2023)

LMA publishes updated real estate finance intercreditor agreements.

Documentation (18 April 2023)

LMA.Automate updates the Corporate Lending Facility Agreement to incorporate Term SOFR. 

Regulation (12 April 2023)

LMA letter on proposed Corporate Sustainability Due Diligence Directive (CS3D).

Documentation (31 March 2023)

LMA publishes note on LMA facility documentation and the recommendations by the Euro Working Group on EURIBOR fallbacks.

Regulation (31 March 2023)

LMA responds to PRA Consultation Paper CP16/22 on the implementation of the Basel 3.1 standards. 

Regulation (29 March 2023)

LMA responds to the call for evidence on the scope of the EU Benchmarks Regulation. 

Documentation (22 March 2023)

LMA publishes updated senior/mezzanine facility agreement drafting guide for real estate financing transactions. 

Regulation (14 March 2023)

LMA responds to the EU Commission proposed directive on harmonising certain aspects of insolvency law.

Documentation (28 February 2023)

LMA publishes compounded CORRA schedule.

Regulation (27 February 2023)

LMA responds to Transition Plan Taskforce (TPT) consultation survey on their proposed Disclosure Framework and Implementation Guidance. 

Popular Resources

Website overview video

Watch our video overview of the LMA website providing a virtual tour of the site to help you locate all the interesting and latest content.

LIBOR Transition Glossary

This glossary covers key terms related to the transition from LIBOR to near risk-free rates ("RFRs").

Sustainable Lending Glossary

The sustainable lending glossary will aid transparency of terms in this rapidly evolving area of the market.

Green Loan Principles (GLP)

The GLP have been developed by an experienced working party with a view to promoting the development and integrity of the green loan product.

Sustainability Linked Loan Principles (SLLP)

Sustainability linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth.

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.

LMA Secondary Settlement Statistics

Collation of settlement statistics from major European trading banks

Understanding the Loan Market

E-learning course comprised of 10 modules providing an overview of the syndicated loan market.

EU Bail-in Legislation Schedule

As part of the co-operation between the LMA, LSTA, APLMA and also ICMA, each of their forms of bail-in clause refer to a common EU Bail-In Legislation Schedule, which has been prepared by the LMA, in order to describe the relevant national implementation legislation and write-down and conversion powers.