Impact on your business and products
The London Interbank Offered Rate (“LIBOR”) is expected to be discontinued or become non representative following the end of 2021. For this reason, regulators and public and private sector working groups are considering a transition to the use of alternative reference rates instead of LIBOR. The alternative reference rate that has been selected by relevant working group is SOFR (Secured Overnight Financing Rate) for US Dollar, SONIA (Sterling Overnight Index Average) for Sterling, €STR (Euro Short-Term Rate) for Euro, SARON (Swiss Average Rate Overnight) for Swiss Franc, TONAR (Tokyo Overnight Average Rate) for Japanese Yen.
These alternative reference rates are not direct replacements for LIBOR and may perform differently to LIBOR. The discontinuation or unavailability of LIBOR may therefore have material and adverse consequences which may be difficult to predict. You should consider seeking independent professional advice on the impact that LIBOR discontinuation and benchmark rate reform may have on your business and the products that you hold. Once the industry settles on solutions to LIBOR discontinuation, National Bank of Fujairah PJSC (“NBF”) will seek to transition to alternative reference rates for relevant products which may require amendments to the terms of products that you hold with NBF.
To learn more about LIBOR, the changes and how it could impact you, please refer to our LIBOR Transition FAQs.
We are here to help
Please contact your relationship manager if you have any questions or would like to receive further information relating to LIBOR discontinuation.
Above information is intended to provide an overview of the discontinuation of the London Interbank Offered Rate (“LIBOR”) to NBF’s customers and counterparties. This information is provided for information only and it is not complete or exhaustive. NBF is under no obligation to update this information. NBF is not providing any advice or recommendation in this document. This document does not constitute legal or regulatory advice.