Briefing Note – Managing the Transition from LIBOR to SONIA
The use of LIBOR as a reference rate in loan agreements in the UK will cease from 31 December 2021. Most UK lenders are transitioning to use SONIA (the “Sterling Overnight Index Average”) as its replacement.
We’ve included a brief guide here about the issues you need to consider if you have any existing LIBOR-based borrowing or interest rate hedging. Navigating the transition can typically prove relatively straightforward in practice.
Please contact us should you wish to have brief informal discussion around your circumstances and options.