IBOR Transition Disclaimer

Preparing for the IBOR Transition
LIBOR is a widely referenced benchmark interest rate used globally for derivatives, loans, bonds and other floating rate instruments. Given recent regulatory reforms and the development of alternative reference rates, it is uncertain whether LIBOR will continue to be produced or published after the end of 2021.

While there is currently no expectation that other interbank benchmark rates, such as EURIBOR, BBSW, HIBOR or CDOR (together with LIBOR, collectively, IBORs) will be discontinued, there is no guarantee that they will continue to be published for the entire term of any financial instrument that references any of these rates.

Timing for the discontinuation of IBORs may vary across currencies and tenors in which they are currently determined, and may vary from the timing for any discontinuation of other IBORs. A change to the methodology used to calculate an IBOR or the permanent discontinuation of an IBOR could have an economic impact on any financial products referencing that IBOR. If an IBOR that is referenced in a financial instrument is discontinued during the term of the instrument, the terms of instrument may provide a process for establishing a fallback rate but for certain types of financial instruments, including most OTC derivatives, it is currently uncertain what that fallback rate would be or how it would be established. The discontinuation of an IBOR could also result in a mismatch between the fallback rate established in the relevant financial instrument and your other financial instruments, including transactions used to hedge the impacted transaction.

You should consider (with your professional advisors) how you may be impacted by these developments and whether it is necessary to amend any related documentation.

RBC Capital Markets is committed to serving our clients. For more information, please contact liborprg@rbccm.com.