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

Latest News

US ARRC releases FAQs on best practice recommendations related to the scope of use of the SOFR term rate

The Alternative Reference Rates Committee (ARRC) has released an FAQ document on best practices related to the scope of use of the CME Group's SOFR term rates.

The FAQs explain general issues such as the ARRC's rationale for publishing its recommendation and the scope of its recommendations. It also covers more specific matters such as the use of SOFR term rates in end-user facing derivatives and the relationship between the ARRC's recommendations and supervisory expectations or CME licencing agreements for the SOFR term rate.

LMA Podcast: Operational considerations around RFR lending

In this LMA podcast, Kam Mahil, Senior Director at the LMA speaks to Brian Fraser, IBOR Transition Programme – Commercial Banking at Lloyds, about operational considerations arising out of RFR-based lending.

With the end of LIBOR rapidly approaching, RFR loans will and are becoming the norm. There are a number of operational considerations in respect of such loans that market participants should be aware of. The podcast covers, amongst other things, operational considerations in respect of: interest periods; prepayments; ancillary facilities; accordion facilities; credit adjustment spreads; market disruption provisions; and tough legacy loans.

The podcast lasts approximately 37 mins.

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.

Video Content

The ECA view on LIBOR transition

Hosted by Kam Mahil – LMA

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

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LIBOR discontinuance and its potential impact on developing markets

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

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Swiss Loan Market Update

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

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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.

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View all our other LIBOR content on LMA Player

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