Discontinuation of LIBOR
On 5th March 2021, the UK Financial Conduct Authority (FCA) announced that GBP LIBOR
would cease on 31st December 2021.
Industry guidance from the Bank of England saw the provision of two alternative reference
rates (ARR), the Bank of England Base Rate and, for some customers, compounded SONIA
(Sterling Overnight Index Average).
We contacted all customers who were identified as having a facility that referenced GBP
LIBOR. This included an email which contained instructions on what options were available
and transition steps to an ARR.
If you continue to have a GBP LIBOR facility with us, that will now be priced by reference to
synthetic LIBOR. On the 29th September 2022 the FCA published an announcement of their
intention to cease the publication of synthetic LIBOR on 1 and 6 month tenors from
31st March 2023 and advised that banks and borrowers should prepare themselves for this,
as well as the future cessation of the 3 month tenor which continues to be under consultation.
We are prohibited from providing new LIBOR facilities or refinancing existing facilities with
LIBOR remaining as the reference rate.
The cessation date for the remaining USD LIBOR tenors has been set for 30th June 2023. If
you have a USD LIBOR facility with us, we will be in touch with you about switching to an ARR.
Please contact your relationship manager if you have any queries about switching from
LIBOR to an ARR.
