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Important information
The global financial industry, including Butterfield is preparing to transition away from a key benchmark interest rate – the London Interbank Offered Rate, or LIBOR – to new alternative reference rates. Regulators have called for LIBOR to be replaced, with a transition period continuing in 2022, thereby allowing Butterfield time to engage with customers, who have credit / loan agreements that incorporate adjustable interest rates and LIBOR referenced as a benchmark.
Whilst the global LIBOR transition is an evolving process, Butterfield’s immediate response is to provide awareness of this process and thereafter ensure a smooth transition for customers. Therefore Butterfield has been orderly transitioning customers to alternate reference rates and these actions will continue for the remainder of transition period. Customer credit agreements are being reviewed to determine any requirement for amended contract language to incorporate a replacement rate.
Butterfield will be proactively contacting customers during the transition period to discuss the relevant approach. Importantly the Bank will be guided by industry language and regulatory standards to ensure customer consistency and fairness with the approach adopted.
To minimise future impact and disruption, Butterfield will no longer issue any new Credit Agreements that use LIBOR as a sole reference interest rate.
Should our customers have any questions regarding LIBOR transition or Credit Agreements, they should contact their Relationship Manager or the Client Services Team to discuss.
Butterfield is regulated in a number of jurisdictions - please click here for Legal & Regulatory information pertaining to Butterfield.
If you have questions or need information please connect with us by phone or e-mail.