LIBOR Transition Client Communication
2021-08-06
Dear Clients
As you are aware, financial benchmarks are being reformed globally. The London Interbank Offered Rate (LIBOR), which is the globally recognised base rate for pricing financial instruments in USD, GBP, EUR, JPY and CHF currencies will largely cease to be available from 1 January 2022 (with some USD tenors will continue to be published until 30 June 2023).
As a consequence, it is important for all participants, including the Bank and yourselves to understand and quantify its exposures to LIBOR and consider how benchmark reforms could impact any products you hold, may acquire, or any transactions that you have or may enter into with where such a product or transaction references LIBOR. The products or transactions impacted are loans, derivatives, trade finance. Following from such a careful examination of the risks involved for these products or transactions, contemplate transition to Alternative Risk-Free Rates (RFRs). In many cases, this will include replacing or amending the terms of the products or transactions. You should be looking at your exposure and please let the Bank know if you would like to discuss. Should you have any questions regarding this, please do not hesitate to contact ibortransition.au@bankofchina.com.
The Bank is actively taking ongoing initiatives and actions to successfully facilitate this transition for our customers and ourselves, having in mind fair customer outcomes and the efficient operation of the market.
Bank of China Limited, Sydney Branch
6 August 2021
