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.
Strengthening 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.
LMA 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). We have also published an updated Term SOFR commentary which: (i) reflects these updates; and (ii) provides additional guidance on certain aspects in light of market feedback.
The update to these documents is part of a wider ongoing documentation update exercise necessitated by the RFR transition, in particular to reflect which documents are most helpful for the market, as well as which currencies and rates are being used in which sectors and jurisdictions and is part of the LMA’s ongoing support to members across markets facilitating IBOR transition and fallbacks.
On 21 December, the European Securities and Markets Authority (“ESMA”) launched a public consultation regarding an overhaul of the asset-level reporting templates and investor (i.e. portfolio-level, tests and cashflows) reporting templates under the EU Securitisation Regulation. Besides setting out an overview of the background leading to a review of the disclosure framework, the consultation paper proposed four options for the way forward.
We are engaging with relevant stakeholders, particularly the buyside to inform our response. The consultation closes on 15 March 2024.
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).
The Guide establishes the structure and purpose of a green loan framework, which is to evidence alignment with the four components of the GLP, as well as the overarching objectives and alignment of projects with taxonomies and eligibility criteria. We have worked with experienced members of our ESG Committee to ensure that the Guide reflects loan frameworks seen in the market.
Recent Blog Posts
On Demand Events
LMA publishes updated Schuldschein loan agreement documents (both English and German languages).
The LMA publishes updated Term €STR exposure draft and German law investment grade document.
The LMA is pleased to have published the first two of a planned series of member state implementation “surveys” on the EU NPL Directive in respect of both Germany and Ireland, which are intended to provide factual and practical guidance for members, as well as the core requirements of the local legislation itself.
LMA publishes updated versions of its developing markets and pre-export finance (PXF) facility agreements for the transition to risk-free rates (RFRs).
LMA responds to the European Commission's targeted consultation on the implementation of the Sustainable Finance Disclosures Regulation (SFDR)
LMA responds to IOSCO Consultation Report on Good Practices for Leveraged Loans and CLOs
LMA publishes duty of care agreement and subordination agreement for use on real estate finance transactions. Accompanying user guides have been produced for these documents.
LMA publishes South African law revised replacement of screen rate language to assist with JIBAR transition.
LMA publishes updated CORRA Schedule and updated compounded TONA Schedule.
LMA response to FCA and PRA Securitisation Rules consultations.
LMA publishes exposure draft term €STR rate switch document for member feedback and updated IG compounded rate documentation.
LMA responds to MPG consultation on market conventions for ZARONIA-linked loans.
LMA letter commenting on adopted ITS on NPL data templates and seeking additional guidance.
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.