|Current Benchmark||New Benchmark|
|United Kingdom||GBP LIBOR||SONIA - Sterling Overnight Index Average|
|United States||USD LIBOR||SOFR - Secured Overnight Financing Rate|
|Euro Area||EUR LIBOR||ESTER - Euro Short-Term Rate|
|Switzerland||CHF LIBOR||SARON - Swiss Average Rate Overnight|
|Japan||JPY LIBOR||TONA - Tokyo Overnight Average Rate|
|Singapore||SGD SOR||SORA - Singapore Overnight Rate Average|
If payments under a product is calculated by reference to LIBOR or SOR and if such rate is permanently discontinued, the relevant contract needs to be reviewed to assess if the relevant consequences are specified in the terms of the contract. If not, parties will have to agree to apply a new benchmark or a “fallback” replacement rate in place of LIBOR or SOR upon its discontinuation so that the contract can continue to be effective.
We are working to ensure that the transition is of minimal impact to you, financially or otherwise. Depending on the product being affected, the transition approaches may differ according to market developments and industry guidance. We will contact you to assist with the transition in due course.
Depending on how the fallback replacement rate compares to LIBOR or SOR, payments under that contract may be more or may be less than they would otherwise have been.
Meet the replacement rates and get an understanding of what is being done in the US, UK, Europe and Singapore summary.
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