On 9 July 2021, the industry-led Working Group on Sterling Risk-Free Reference Rates (Working Group) issued a paper to assist borrowers in understanding and achieving the end-Q3 milestone for active transition of legacy GBP LIBOR loans. The Working Group encourages timely engagement with relevant parties and the preparations needed to ensure readiness for the recommended milestone on active transition.

The key points in the paper include:

  • Borrowers should expect lenders to be engaging with them on the active transition of legacy GBP LIBOR contracts, aiming to complete this process by end-Q3 where possible.
  • This reflects a milestone recommended by the Working Group intended to help to reduce resource constraints towards the end of 2021 and ensure preparedness for the cessation of GBP LIBOR at the end of 2021.
  • Borrowers are encouraged to actively engage with their lenders and advisors to understand what this milestone means for them, how they can achieve it and how to ensure their readiness for LIBOR transition more broadly.