On 16 October, the Loan Market Association (“LMA”) published an updated version of a list that sets out the near risk-free rate (“RFR”) referencing loans which have been announced to date. The list is based on publicly available information and seeks to raise awareness of RFR-referencing loans by providing information on the conventions used.

The latest list includes the recent multicurrency syndicated loan for Tesco, the bilateral project finance loan for Innova Energy and the club loan for Olam International. All deals used compounded in arrears for the RFR.  Some of the deals contemplate interest being calculated by reference to the Sterling Overnight Index Average and to the Secured Overnight Financing Rate for GBP- and USD-denominated loans, respectively, whilst continuing to use the euro interbank offered rate (“EURIBOR”) for EUR-denominated loans. This is a trend we expect to continue, although the working group on euro risk-free rates continue to explore the specific issues associated with EURIBOR fallbacks for cash and derivatives products, with the results of the recent public consultation on this topic expected soon.

 The updated list of RFR referencing loans is available on the LMA’s LIBOR microsite.

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