For years, the London Interbank Offered Rate (LIBOR), the reference rate for unsecured short-term borrowing in the interbank market, has served as a global benchmark for the pricing of floating-rate corporate loans, among other financial contracts. The Financial Conduct Authority of the United Kingdom has begun the LIBOR transition to phase out LIBOR, and the publication of the five remaining US Dollar rates will cease after 30 June 2023.
For US dollar-denominated debt, there is an ongoing transition towards an alternative reference rate – the Secured Overnight Financing Rate (SOFR). This is particularly significant for Pakistani Independent Power Producers (IPPs) that have executed LIBOR-based foreign currency loan agreements extending beyond June 2023 with international lenders.
RIAA Barker Gillette – Pakistan, with the support of Fieldfisher Capital LLC, is advising on the implications of the phase-out, alternatives to the LIBOR benchmark and on the legal, regulatory and other measures required to be undertaken by the IPPs, relevant Government of Pakistan entities and foreign lenders.
The transition is also significant for many other Pakistani businesses that have LIBOR-based US dollar-denominated debt with a tenor extending beyond June 2023.
Our team advising the IPPs on this matter is led by Hasnain Naqvee (Senior Partner-Pakistan).
For further details on the LIBOR transition, please visit https://www.brecorder.com/news/40145382.
This article is not legal advice; it provides information of general interest about current legal issues.
RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in four major cities in Pakistan: Karachi, Islamabad, Lahore, and Peshawar, and affiliated offices in Dubai (DIFC) and London.
The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognize the firm as a top-tier law firm in Pakistan.
RIAA Barker Gillette is the exclusive member firm in Pakistan for Lex Mundi, the world’s leading network of independent law firms with in-depth experience in over 125 countries worldwide.
