ICICI Bank executes SOFR linked transactions
October 07, 2021
· Carries out term loan and cross currency swap derivative transactions linked SOFR
· The deals showcase the Bank’s readiness towards LIBOR transition
Mumbai: ICICI Bank today announced that it has executed its first term loan and cross currency swap derivative transactions linked to Secured Overnight Financing Rate (SOFR). The transactions were carried out with a corporate client through the Bank’s International offices. These transactions indicate the Bank’s preparedness towards smooth transition from USD LIBOR (London Interbank Offered Rate) to transactions linked to Alternative Reference Rates (ARR). In January 2021, the Bank had executed its first interbank money market transaction linked to SOFR, which has been identified as the replacement for USD LIBOR.
Commenting on the transaction, Mr. Anuj Bhargava, Head - Global Clients Group, ICICI Bank said, “The Bank has been actively working with its clients for seamless transition from LIBOR to ARRs. These transactions are just the start of the move towards the ARRs and we are confident that increasingly Indian corporates will move towards ARR based transactions.”
Mr. B. Prasanna, Group Head - Global Markets, Sales, Trading and Research, ICICI Bank said, “With the slew of measures announced by regulators globally, there is an increased shift towards ARR linked products in markets. As the cessation deadline approaches, the liquidity in ARR linked products will increase and ICICI Bank is ready to widen its product suite to meet the customer requirements.”
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About ICICI Bank: ICICI Bank Ltd (BSE: ICICIBANK, NSE: ICICIBANK and NYSE:IBN) is a leading private sector bank in India. The Bank’s consolidated total assets stood at ₹15,72,772 crore at June 30, 2021. ICICI Bank's subsidiaries include India's leading private sector insurance, asset management and securities brokerage companies, and among the country’s largest private equity firms. It is present across 15 countries, including India.
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