Developing Markets
Developing markets offer great opportunities as global dynamics shift, demand for their resources increases and new technologies evolve. At the LMA, we seek to bring about increased efficiencies and standardisation in developing markets, whilst educating our members about the opportunities and challenges they may face when operating in these regions.
Latest News
LMA publishes multi-jurisdictional African facility agreement to assist investors with cross-border lending on the continent
On 24 June 2024, the LMA published a new USD Term SOFR loan agreement, governed by English law while assuming a variety of African borrowers/guarantors including Mauritius, Ghana, Nigeria, Kenya, Tanzania, Uganda and Zambia.
This aims to promote certainty for investors lending into Africa via the “Mauritian Holdco Structure”, whereby international investment is channelled into a Mauritian parent “Holdco” and “on-lent” to operating subsidiaries in the relevant African countries. Mauritius is popular due to a lack of foreign exchange controls, a strategic location, economic, political and legal stability, a raft of double tax treaties with other African countries and a skilled, bilingual workforce.
To access the document, please click here.
LMA publishes guidance on documentary considerations when dealing with sovereign obligors
On 7 June 2024, we are pleased to have published a guidance note which sets out documentary considerations when dealing with a sovereign borrower or guarantor. The guidance has been produced following demand from our members, partly driven by recent experiences in the market in respect of sovereign distress cases.
The guidance note is intended to be a helpful tool for lenders, investors, borrowers and advisers of the relevant considerations in the context of dealing with sovereign obligors (which includes for these purposes a state-owned entity).
The note can be found under the Issues and Guidance, Export Finance and Developing Markets sections of the Documents Index.
LMA publishes South African law JIBAR rate switch agreement to assist with market transition to ZARONIA
On 9 May 2024, we published further South African law documentation to assist the loan market in transitioning away from JIBAR to compounded ZARONIA.
The Unsecured Single Currency Single Borrower Term and Revolving Facilities Agreement Incorporating Rate Switch Provisions (the “Exposure Draft SA Rate Switch Agreement”) provides for an in-built switch from JIBAR to a backward-looking compounded ZARONIA on the occurrence of specified trigger events. It includes mechanics and provisions for transition which are intended to mitigate the risk of a further amendment being required.
