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Clifford Chance

Clifford Chance

Briefings

Negative LIBOR – implications under syndicated lending documentation

2 February 2015

Negative interest rate benchmarks are not unknown.  The loan market first grappled with the issue in 2011 when Swiss Franc LIBOR was reported as negative in some circumstances.  However, recent activity by central banks has resulted in a preponderance of negative LIBORs for Swiss Francs and negative LIBORs and EURIBORs for Euro, sparking fresh concern about the potential effect on lending arrangements.  This briefing considers some of the key questions arising for Lenders and Borrowers in the syndicated loan market.

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