Welcome to the Summer 2019 edition of the Addleshaw Goddard Corporate Debt Update.
During the last quarter, the general economic outlook combined with continued political uncertainty and distraction, not least that caused by Brexit, has led to subdued activity levels and resultant demand for credit. Capital remains available, but cautious investment plans and credit appetite towards certain sectors (for example, construction, retail and care homes) has given rise to uncertain transaction volumes. Competition and liquidity for stronger credits and proposals, and the continued expansion of the range of funders and evolution of products, does mean that solutions are available provided terms can be agreed.
In this edition, we look at the upcoming replacement of LIBOR and the fast approaching transition date. As 2021 approaches we summarise the current position regarding the replacement of LIBOR as a benchmark funding rate and highlight how it is crucial at this stage that consideration is given to the treatment of legacy products, including some thoughts on the issues that lenders and borrowers may want to take into account. Click here to read this article.
Following on from the article that considered the growth of 'green' financing, which appeared in one of our previous editions of this publication, we take a look at the evolving scope and growth of sustainable financing, how it differs from green financing, what the benefits of being involved in this type of financing might be for lenders and borrowers; and what the future of sustainable financing might look like. Click here to read this article.
Finally, EMIR REFIT entered into force on 17 June 2019. It seeks to amend and simplify EMIR to "address transparency issues, compliance costs and insufficient access to clearing for certain counterparties". It provides some good news for the new category of "small financial counterparty" introduced by the legislation and also seeks to simplify and streamline reporting requirements. Our article summarises the changes brought about by EMIR REFIT. Click here to read this article.
We do hope these articles are of interest – do not hesitate to contact any of the team if you would like to discuss or if there are topics which you would like us to address in future editions.
Click the link below to read the full update: