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LIBOR Transition

On 5 March 2021, the UK Financial Conduct Authority confirmed the future cessation and loss of representativeness of: (i) all 7 euro LIBOR settings, all 7 Swiss franc LIBOR settings, the Spot Next, 1-week, 2-month and 12-month Japanese yen LIBOR settings, the overnight, 1-week, 2-month and 12-month sterling LIBOR settings and the 1-week and 2-month US dollar LIBOR settings immediately after 31 December 2021; and (ii) the overnight and 12-month US dollar LIBOR settings by 30 June 2023. Work is progressing on the transition to alternative near risk-free reference rates in each of the LIBOR currencies. The LMA is working with the market, other trade associations and the regulators on the transition.

LIBOR Transition - counting down to end-2021

LIBOR Transition - counting down to end-2021 Countdown

Latest News

ARRC formally recommends term SOFR

The US Alternative Reference Rates Committee (the "ARRC") has formally recommended CME Group's forward-looking SOFR term rates. The recommendation marks the completion of the ARRC's Paced Transition plan and is a major milestone in the transition away from USD LIBOR. According to the ARRC, market participants "now have all the tools necessary" for a successful transition away from USD LIBOR.

£RFR Working Group calls for parties to loan agreements to actively transition legacy GBP LIBOR loans by end-Q3

The Working Group on Sterling Risk-Free Reference Rates (the Working Group) has reiterated its recommended end-Q3 deadline for the active transition of LIBOR-linked loans, and emphasised the importance of robust fallbacks where active transition is not possible. This includes action for multicurrency loans, especially where other benchmarks are due to cease or become unrepresentative at the end of 2021.

LMA publishes updated list of syndicated and bilateral loans referencing risk-free rates

On 29 July, we published an updated version of the list setting out RFR-referencing loans publicly disclosed to date. The update reflects SOFR transactions for: a JV managed by Van Weelde Shipping Group; Bunge (the first SOFR-linked export finance transaction in Singapore); and Oman's BankDhofar. The update also reflects the UK's first PPP LIBOR transition announced by HICL. The list is not comprehensive of all loan market transactions referencing RFRs given the private nature of the loan market.

Please contact Kam Mahil to submit a transaction to the list.

The ECA view on LIBOR transition

Hosted by Kam Mahil – LMA

LMA webinar update on the transition from LIBOR in the loan market

LIBOR discontinuance and its potential impact on developing markets

This webinar includes a 20-minute presentation followed by a 20-minute Q&A session.

LIBOR-discontinuance-its-potential-impact-on_developing-markets.jpg

Swiss Loan Market Update

This webinar covers a wider loan market update and includes a discussion on LIBOR.

An introduction to the LMA Exposure Drafts of Multicurrency Compounded Rate/Term Rate Facilities Agreements - On Demand

Press: Do Not Quote Speakers Without Seeking Authorisation First.

View all our other LIBOR content on LMA Player

Resources

LMA 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

RFR Working Groups - Newsletters:

£ Working Group: May 2021

€ Working Group: May 2021

US ARRC: April 2021 - May 2021

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LIBOR Transition