On November 12, 2020, the Asia Pacific Loan Market Association (“APLMA”) published two draft discussions on facility agreements (“facility agreements”) for U.S. dollar credit transactions in the Asia-Pacific region. Until recently, the Asian credit market did not have market standards for RFR formulas, price methodology and institutional operational practices. APLMA Post launched the first SOFR-based syndicated lending agreements for syndicated loans in the Asia-Pacific, first appeared on Eye on IBOR Transition. . Each proposed facility contract uses a different method for calculating the secure financing rate, or SOFR, which is the RFR for U.S. dollars: SOFR compound daily and simple daily sofr. . . .
Banks should stop giving new LIBOR-related products that will mature after 2021. . Mayer Brown is a global legal services organization that includes legal practices that are separate entities (the Mayer Brown Practices). Mayer Brown`s practices are: Mayer Brown LLP, a limited partnership, which is based in the United States; Mayer Brown International LLP, a limited partnership founded in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its related companies in Asia; and Tauil – Chequer Advogados, a Brazilian legal partnership with which Mayer Brown is linked. “Mayer Brown” and the Mayer Brown logo are trademarks of Mayer Brown Practices in their respective jurisdictions. 1 Reform of interest rate benchmarks, Hong Kong Monetary Authority, 13 November 2020 APLMA welcomes comments and comments on the facility agreements before 4 December 2020. Based on these comments, APLMA intends to provide the recommended forms as soon as possible. This will go a long way to helping institutions achieve the various transitional IBOR objectives set by regulators. . .
. Banks should be able to offer products related to the LIBOR-related RFR © Copyright 2020. Mayer Brown`s practices. All rights reserved. While the aforementioned problems are not only in the Asian syndicated lending market, Asia has only slowly developed market practices for these issues relative to the rest of the world.