BAT breaks new ground in first multicurrency risk-free rate loan

By Mike Turner
12 Mar 2020

British American Tobacco has signed the first multicurrency revolving credit facility that uses a variety of risk-free rates as benchmarks, potentially clearing a hurdle that loan market participants have long said was hindering the transition from Libor.

The £6bn-equivalent facility can be drawn in sterling, dollars and euros and uses the sterling overnight index average (Sonia), secured overnight financing rate (Sofr) and euro short term rate (€str) for each tranche as the benchmark for the margin.

Barclays and HSBC coordinated the 21 bank facility.

Multicurrency facilities have ...

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