Perspectives on the discontinuance of the London Interbank Offered Rate (LIBOR)

The interest rate benchmark LIBOR is targeted to formally cease after the end of 2021, resulting in a significant shift across financial markets. As market participants prepare to transition away from LIBOR to risk-free rates (RFR), GLAS is continuing to closely monitor market trends, developments and updates in this area across all of its global locations, as well as continuing to liaise and consult with regulatory and industry bodies, including the FCA, the Bank of England, the Loan Market Association (LMA), the Alternative Reference Rates Committee (ARRC) and the International Capital Markets Association (ICMSA), particularly in light of the anticipated requirement for alternative fallback rate setting provisions to be included in deal documentation from October 2020 onwards.

GLAS is also working closely with its systems providers and across all internal departments to ensure capability and flexibility across all of our products and services to accommodate the relevant adjustments required arising from the transition from LIBOR to RFR facilities, either for future deals or in relation to amendments to existing deal documentation.

We are interested in your views and comments in this area, so please feel free to contact our team members listed below for further discussion on transition initiatives, or with any queries you may have:

Lorna Fleming, lorna.fleming@glas.agency | +44 (0) 20 3866 1480

Juliette Challenger, juliette.challenger@glas.agency | +44 (0) 20 3866 1485

Joanne Brooks, joanne.brooks@glas.agency | +44 (0) 20 3949 7875