These transactions indicate the Bank’s preparedness towards smooth transition from USD LIBOR (London Interbank Offered Rate) to transactions linked to Alternative Reference Rates (ARR). In January 2021, the Bank had executed its first interbank money market transaction linked to SOFR, which has been identified as the replacement for USD LIBOR.
Commenting on the transaction, Anuj Bhargava, Head - Global Clients Group, ICICI Bank said, “The Bank has been actively working with its clients for seamless transition from LIBOR to ARRs. These transactions are just the start of the move towards the ARRs and we are confident that increasingly Indian corporates will move towards ARR based transactions.”
B. Prasanna, Group Head - Global Markets, Sales, Trading and Research, ICICI Bank said, “With the slew of measures announced by regulators globally, there is an increased shift towards ARR linked products in markets. As the cessation deadline approaches, the liquidity in ARR linked products will increase and ICICI Bank is ready to widen its product suite to meet the customer requirements.”
At around 1:22 PM, ICICI Bank was trading at Rs700.55 apiece down by Rs1.55 or 0.22% on Sensex.