State Bank of India (SBI) has executed two inter-bank short term money market deals with pricing linked to SOFR (Secured Overnight Financing Rate).
SOFR is a replacement for USD LIBOR that may be phased out end-2021.
This follows the U.K.’s Financial Conduct Authority deciding not to compel banks on LIBOR calculation after December. “The transaction shows SBI’s progress in aligning systems and processes to embrace alternate reference rates,” said C. Venkat Nageswar, DMD, (International Banking Group).
