To QNB ALAHLI clients who have FCY floating products

Posted on : Mon, 29 Nov 2021

Due to the global trend and the direction to replace Libor Rate with RFR ”Risk Free Rate”  and it’s implications on the applied interest rate of your current foreign currency deal/s whereas such transition shall be applied starting 2022.

 Therefore, we are honored to identify hereunder  a preliminary statement of the transition process steps and the implications that will be applied on your current deal/s

  

  • Starting from 2022 Deals whereas (EUR Libor, GBP Libor, CHF LIBOR, JPY LIBOR) are applied as a reference rate will be migrated
  • By end of June 2023 Deals whereas USD LIBOR is applied will be migrated

  • New Rate Methodology: will apply the following calculation based on the current deal tenor (1M, 3M, … etc.)

Calculation = Compounded new Reference Rate + Spread adjustment which will be announced by ISDA

•The new reference rate is floating calculated on a compounded basis

•The Spread adjustment is fixed during the deal remaining lifetime

NB. Rates published on Reuters and Blomberg Websites

For Further information; please refer to any branch or contact us on 19700

For more details about Libor Transition; please click here