Welcome to the November 2018 edition of our Corporate Borrower Update.
It's been a busy summer for our corporate banking team, with Q4 2018 also showing a great deal of corporate activity which is supported by the continued high levels of available liquidity. With the Brexit date fast approaching, there will doubtless be some reticence around transactions, although opportunities should continue to arise.
In this issue of the Corporate Borrower Update, on page 1 we take a look at 'green finance', considering the LMA's launch of the 'Green Loan Principles' and the potential benefits to borrowers in entering into socially and environmentally responsible activities.
August 2018 saw the EU respond to the Trump Administration's reinstatement of sanctions against Iran by introducing the 'Blocking Regulation' which operates to nullify the application of those sanctions on EU persons. On page 3 we consider the impact of the EU's Blocking Regulation on borrowers in the context of high standards imposed by banks' on borrowers in respect of sanctions.
Finally, on page 4 we summarise the current position regarding the replacement of LIBOR as a benchmark funding rate following scandals around rate-setting. Bloomberg has called LIBOR 'the world's most important number' – it underpins such a vast number of financial transactions that its replacement and the related transitional arrangements are both systemically important and technically challenging.
We do hope these articles are of interest – do not hesitate to contact any of the team if you would like to discuss (see page 6 onwards) or if there are topics which you would like us to address in future editions.
We look forward to working with you over the coming months.