- Finance Law
Phasing Out LIBOR after 2021: Notes and Legal Considerations Concerning the Cross Industry Committee on Japanese Yen Interest Rate Benchmark’s Public Consultation Paper
In July 2017, Andrew Bailey, Chief Executive of the UK Financial Conduct Authority, declared that the authority would no longer persuade or compel panel banks to make LIBOR (London Interbank Offered Rate) submissions after 2021. As submissions are necessary for the creation of LIBOR, which is widely referenced to determine applicable interest rates in financial transactions, concern has increased among market participants that LIBOR itself would not exist after 2021.
In Japan, the issue of LIBOR discontinuation led to the establishment of a Cross Industry Committee on Japanese Yen Interest Rate Benchmarks in August 2018. The Committee published the Public Consultation on the Appropriate Choice and Usage of Japanese Yen Interest Rate Benchmarks in July 2019.
In our newsletter, we will discuss the Japanese response by presenting the main points of this committee’s consultation paper and consider the legal issues anticipated to derive from their suggestions.
*This article is also available in Japanese.
He has an extensive track record representing issuers, managers and selling shareholders in various capital markets transactions, incduling global IPOs, global follow-on offerings, convetibles bonds offerings, debt offerings, private investments in public companies (PIPEs), J-REITs offerings. He also has been active in fincance transactions by venture companies.