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Transitioning out of LIBOR and adopting SONIA—what is the impact for real estate finance?

Transitioning out of LIBOR and adopting SONIA—what is the impact for real estate finance?
Published on: 04 August 2020
Published by: LexisPSL
  • Transitioning out of LIBOR and adopting SONIA—what is the impact for real estate finance?
  • What are the key dates for transitioning away from London Inter-bank Offered Rate (LIBOR) ?
  • What is likely to be used to replace LIBOR in real estate finance loans, and what are the advantages and disadvantages of that new rate?
  • What are the practical considerations of moving to SONIA from LIBOR specifically for real estate finance loans, in particular, what elements of REF documentation should be analysed and considered?
  • What should practitioners be doing now to prepare for this change, and do you think that a co-ordinated approach to making this change would be beneficial?

Article summary

Banking & Finance analysis: Gordon McMillan, partner at Bryan Cave Leighton Paisner LLP, considers the impact of transitioning away from the London Inter-bank Offered Rate (LIBOR) to the Sterling Overnight Index Average (SONIA) for real estate finance (REF), looking in particular at the impact on REF documentation. or take a trial to read the full analysis.

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