LMA promotes liquidity in developing markets by launching new documentation03 September 2013
The LMA is pleased to announce the launch of its recommended form Secured Single Currency Term Facility Agreement intended for use in developing markets transactions.
This document was created in response to demand from market participants, following the successful launch of the LMA's suite of unsecured loan documentation for use in developing market transactions in May 2013. It signals the LMA's continuing commitment to expand its suite of documentation in developing market jurisdictions, with a view to achieving greater efficiencies and standardisation across the market through the use of a common framework and language, enabling market participants to concentrate on the key commercial drivers which form the basis of their transactions.
The secured developing markets document, which uses the same basic structure and "boilerplate" as the LMA Recommended Forms of Primary Documents, was put together and agreed by an experienced working party, consisting of representatives from international banks (including in-house lawyers) and major international law firms.
Whilst the document envisages that the relevant transaction will be governed by English law, no particular jurisdiction of incorporation is assumed with regards to the obligors themselves. Therefore, whilst the document contains provisions applicable to developing markets generally, users must consider any relevant legal or other issues arising in the jurisdiction in which the obligors are incorporated.
Commenting on the documents, Clare Dawson, LMA Managing Director, said:
"The new LMA secured developing markets document has been produced to meet market demand, with the aim of further improving liquidity within the syndicated loan markets. The launch of this new document sits within our suite of documentation for use in developing market jurisdictions, and signals our continued commitment to expanding the initiatives undertaken in developing markets. We hope that this document will lead to more efficient and productive negotiation of documentation within these increasingly important areas of the market."