lma developing markets conference 2019 platinum sponsor … · 2019-08-23 · lma developing...

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LMA Developing Markets Conference 2019Broadening Horizons

AFRICA CEE CIS MIDDLE EAST RUSSIA TURKEY

Update on LMA developing markets initiatives

Clare Dawson, Chief Executive - LMA

2

Loan Market Association

the authoritative voice of the EMEA market

LMA today – 65 jurisdictions globally



Events and Training

- 90+ events planned in 21 centres across EMEA

- In 2019 to date, we have run training events and conferences across EMEA including in Istanbul, Johannesburg, Dubai and Lagos

- Expanded online reach: 48 webinars and spotlights, and e-learning programme

- 2019 training events and conferences:

• Tel Aviv Seminar (1 May)• Loan Operations Conference (6 June)• Prague Training (20 June)• South Africa Conference and Training (3 – 4 July)• Uganda Afternoon Seminar and Training (22 – 23 July)• Rwanda Afternoon Seminar and Training (24 – 25 July)• East Africa Conference and Training (11 – 12 September)• Moscow Documentation Training (12 September)• Warsaw Documentation Training (2 October)• African Loan Documentation Course - Nairobi (29 – 31 October)• Middle East Conference - Dubai (12 November)



LIBOR reform and the use of alternative benchmarks

Our intention is that, at the end of this period, it would no longer be necessary for the FCA to persuade, orcompel, banks to submit to LIBOR.” – Andrew Bailey, July 2017

No clear alternatives as yet – Focus was initially on the derivatives market rather than cash markets (note inter-relationship of products)– Some RFRs not yet in existence – How to document deals today?– Updating of templates absent alternative

Different rates across different jurisdictions– Coordination between jurisdictions and product areas (common concerns)– Secured v unsecured – Pricing / value shift– Publication times

Legacy contracts

– Suitability of existing fallbacks long-term – Amendment process (no protocol system, cf ISDA)– Deals documented today



Key differences between LIBOR and RFRs

• LIBOR is forward looking and published for multiple tenors –RFRs are currently backward looking overnight rates only

• LIBOR is published for all five currencies based off the same methodology, at the same time and in the same place – RFRs are domestic rates, are not identical (some secured, some unsecured) and it is unclear as yet when and where they will be published

• LIBOR includes a bank credit risk and term element – RFRs do not



The LMA work on LIBOR

Documentation and Education:

• Changes were made to the interest rate fallback provisions in LMA documentation in November 2014 following reforms to LIBOR

• Disappearance of LIBOR for “less common” currencies and tenors caused unexpected difficulties - a number of changes were made to LMA documents as a result

• January 2018 Webinar: ‘The future of LIBOR and the impact on the syndicated loan market’• New guide published March 2018 and updated ‘LMA and ACT Guide - The future of LIBOR:

what you need to know’• New replacement of screen rate language published May 2018

Engagement with all types of market participants:

• Lenders, both bank and non-bank• Borrowers• Regulators• Other trade associations



LMA E-learning Programme – “Understanding the Loan Market” and “Schuldscheindarlehen”

8

Effecting

Change

Introduction to

the Secondary

Loan Market

Overview of the

Loan product

Introduction to

LMA

Documentation

Types of

Syndicated

Loan and Credit

Facilities

Transaction

Timetables

Servicing the

Loan

Pricing and

Payments

Protecting the

Loan

Improving

Liquidity in the

Secondary Loan

Market

Free to access for LMA members

5000+ delegates worldwide

10 modules & assessments

New Standalone

Module:

Schuldscheindarlehen



Developing Markets Microsite



What do you think will be the main challenge to growth in 2019 in developing market jurisdictions?

29 April 2019

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LMA Developing Markets Conference 2019Broadening Horizons

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With many thanks to our sponsors

LMA Developing Markets Conference 2019

lma developing markets conference 2019 platinum sponsor … · 2019-08-23 · lma developing...

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