Money & Banking

LIBOR replacement: Union Bank offers ARR-based loans

Our Bureau |BL Mumbai Bureau | | Updated on: Jan 05, 2022

Karimnagar, Telangana, 01/04/2020: The Andhra Bank signboards removed and replacing with the Union Bank of India (UBI) at the RTC bus station complex, in Karimnagar town on April 01, 2020. Photo: K.M. Dayashankar / The Hindu | Photo Credit: BYKMDAYASHANKAR

The bank is offering ARR-based trade finance loans, bilateral, syndication, export credit, foreign currency and multiple banking loans

Union Bank of India (UBI) on Wednesday said it has modified its systems and processes to embrace the change from London Inter-Bank Offered Rate (LIBOR) to Alternative Reference Rates (ARRs).

The public sector bank, in a statement, emphasised that it has already concluded deals in ARR (Secured overnight financing rate/SOFR for US Dollar loans) through its overseas branches (at Hong Kong, DIFC Dubai & Sydney) and through its domestic branches.

Also read: LIBOR Transition: Systems and processes aligned to support transactions linked to ARR, says SBI

The bank is offering ARR-based trade finance loans, bilateral, syndication, export credit, foreign currency and multiple banking loans, per a statement.

Rajkiran Rai G, MD & CEO, UBI, said, “LIBOR transition is a significant financial event affecting international financial markets. We are well prepared to assist the smooth transition in embracing ARR mechanism in the Indian banking industry.”

Published on January 05, 2022
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