EURIBOR meaning

This checklist outlines the principal ISDA documentary points that should be considered during a financing transaction. Term sheet stage If acting for a borrower and specialist hedging advisers are engaged, obtain their input on the term sheet. If acting for a borrower, confirm the total pricing of the deal is clear (covering both the loan and the hedge). A borrower may pick a lender for a low loan margin, only to find that the swap credit spread from the same lender renders the overall economics less appealing than those from another lender. Are the loan and hedging set on an IBOR basis (eg EURIBOR) or on a risk free rate (eg SONIA or SOFR)? Does the lender require a zero floor in its loan? If acting for a borrower, ensure the borrower understands the consequences of any mismatch between this and the hedging documentation. ...

Antitrust The application in Case C-60/25 Livronsa has now been published, an Italian national reference asking whether national courts must regard the Euribor manipulation evidence confirmed by the Commission and the Court of Justice as conclusive, and whether the ensuing competition restriction applies only to the derivatives market or instead to all markets that use the manipulated Euribor benchmark—see also the application The General Court has recently issued an order in Case T-413/21 Feralpi v Commission, an action lodged against the Commission for failing to pay Default Interest as required by the General Court in Cases C-85/15 Feralpi v Commission...

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ARCHIVED: This Practice Note has been archived and is not maintained In brief, a market disruption clause explains how loan interest is determined when a lender’s funding costs exceed the London Interbank Offered Rate (LIBOR) or another nominated benchmark—often arising when the financial system is under strain, causing markets to seize up, or when the particular lender faces solvency issues. Either scenario is liable to increase the lender’s cost of funds. These clauses are typically found in facility agreements where interest is set by reference to a floating rate such as LIBOR or the Euro Interbank Offered Rate (EURIBOR). This Practice Note considers market disruption provisions in the setting of LIBOR-based syndicated facilities. Similar considerations apply to syndicated facilities that calculate interest by reference to EURIBOR and other benchmark rates. The ongoing move away from LIBOR to risk‑free rates, including SONIA, will have an impact on the drafting of market disruption provisions. For further detail, see Practice Notes: LIBOR transition and Interest provisions in (LIBOR-based) Loan Market Association (LMA)...

ARCHIVED: This Practice Note has been archived and is not maintained. This archived Practice Note is no longer updated. It outlines the Loan Market Association (LMA)’s method for calculating interest in its LIBOR-based facility documentation. It reviews the interest calculation clause—covering margin, the London Interbank Offered Rate (LIBOR), the Euro Interbank Offered Rate (EURIBOR) or another benchmark, plus mandatory costs—before concentrating on how the benchmark rate (such as LIBOR) is derived. How LMA documents define and compute LIBOR, EURIBOR or an alternative benchmark, including calculation of the Screen Rate—see Definition of LIBOR, EURIBOR and Benchmark Rate in LMA documents and Definition of Screen Rate in LMA documents Drafting implications of ICE Benchmark Administration Limited assuming responsibility for administering LIBOR Drafting effects of the ICE LIBOR Error Policy and the Euribor Intraday Refixing Policy, which set out refixing and republication of LIBOR and EURIBOR respectively—see Intra-day correction, recalculation or republication of a Screen Rate The fallback waterfall where the Screen Rate is unavailable for...

This Practice Note examines the application of term risk‑free rates (RFRs) in loan agreements. It addresses: what term RFRs exist and when they are appropriate Term Secured Overnight Financing Rate (Term SOFR) and the Loan Market Association (LMA) Facilities Agreements EURIBOR and Term €STR key considerations when deploying Term Sterling Overnight Index Average (Term SONIA) For: guidance on using compounded RFRs in loan agreements, see Practice Note: Interest provisions in risk‑free rate based loan agreements background on interest in a facilities agreement and the types of rates available, see Practice Note: Introductory guide to interest in loan agreements our material in an easy‑to‑navigate interactive toolkit, see: toolkit an overview of the key issues in the LIBOR transition, see Practice Note: Introductory guide to LIBOR transition a list of developments for each LIBOR currency during the transition, see the: LIBOR developments tracker What term RFRs are available and when can they be...