ICICI Bank executes its first SOFR linked transaction
January 21, 2021
- The deal showcases the Bank’s progress towards LIBOR transition
- The transaction was executed through the Bank’s Hong Kong branch
Mumbai: ICICI Bank today announced that it has executed its first interbank - money market transaction linked with Secured Overnight Funding Rate (SOFR). The transaction, executed through the Bank’s Hong Kong branch on Wednesday, is part of the Bank’s Benchmark Transition Management plan to assess the preparedness towards a smooth transition to the new Alternative Reference Rates (ARRs).
SOFR has been identified as the replacement for USD LIBOR (London Interbank Offered Rate). Globally, there is a move to migrate from LIBOR to transactions linked to ARRs and it is expected that fresh transactions after December 2021 would not be referenced to LIBOR.
Commenting on the transaction, Mr. Sriram H. Iyer, Head-International Banking, ICICI Bank said, “The Bank has been tracking the developments with respect to the benchmark reforms and has been working with various stakeholders to ensure smooth transition from LIBOR to new ARRs in the Indian market. With these transactions, we are working towards building internal capabilities to transition to the new ARRs in line with various regulatory timelines.”
Added, Mr. B. Prasanna, Group Head - Global Markets, Sales, Trading and Research, ICICI Bank, “Transition from LIBOR to ARR is a critical event in financial markets. ICICI Bank is at the forefront of the financial markets to help transit from LIBOR and the transaction is part of the transition initiatives by the Bank.”
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 ₹14,76,014 crore at September 30, 2020. 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.
Certain statements in this release relating to a future period of time (including inter alia concerning our future business plans or growth prospect s) are forward - looking statements intended to qualify for the 'safe harbor' under applicable securities laws including the US Private Securities Litigation Reform Act of 1995. Such forward - looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward - looking statements. These risks and uncertainties include, but are not limited to statutory and regulatory changes, international economic and business conditions; political or economic instability in the jurisdictions where we have operations, increase in non - performing loans, unanticipated changes in interest rates, foreign exchange rates, equity prices or other rates or prices, our growth and expansion in business, the adequacy of our allowance for credit losses, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks, changes in India’s sovereign rating, as well as other risks detailed in the reports fi led by us with the United States Securities and Exchange Commission. Any forward looking statements contained herein are based on assumptions that we believe to be reasonable as of the date of this release. ICICI Bank undertakes no obligation to update forward - looking statements to reflect events or circumstances after the date thereof. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov