On 12 November 2020, the Asia Pacific Loan Market Association (“APLMA”) published two discussion draft facility agreements (the “Facility Agreements”) referencing risk-free reference rates (“RFRs”) for US dollar syndicated loan transactions in the Asia Pacific region. Until recently, there has been a lack of market standard for RFR calculation formulae, pricing methodology, and institution operational practice in the Asia loan market.

Continue Reading APLMA launches the first SOFR-based facility agreements for syndicated loans in Asia Pacific

The first government to issue risk-free rate (“RFR”) referenced notes in Asia is Singapore.

In August 2020, the Monetary Authority of Singapore (“MAS”) auctioned off S$500 million of six-month floating rate notes (“FRN”) with a spread over compounded Singapore Overnight Rate Average (“SORA”) in arrears.

SORA is the recommended alternative to the Singapore Interbank Offered