“It is the first SOFR deal in the ECB space and the transaction demonstrates SBI’s position as a leader in aligning its systems and processes to embrace Alternate Reference Rates (ARRs).
“IOCL, by availing the first SOFR linked ECB, will set the pace for smooth transition by Indian corporates to the ARR mechanism,” the bank’s Deputy Managing Director (International Banking Group) C Venkat Nageswar said.
IOCL’s Director (Finance) Sandeep Gupta said, “This is a first step, albeit an important one, in our quest to gear up for the impending transition from LIBOR to ARRs. This will also facilitate in efficiently tapping the funding opportunities provided by the ECB market in future.”
SOFR is an identified replacement for the USD LIBOR which is expected to be phased out at the end of 2021.
The sunset has been triggered by the decision of the Financial Conduct Authority (FCA) in the UK not to compel contributing banks for LIBOR calculation after December 2021.
In a separate release, SBI said it has donated Rs 1 crore to the Mumbai Police Foundation. The funds will be utilised for the welfare of family members of deceased police personnel.