On 17 December 2024, we published a package of documentation to assist with the implementation of robust EURIBOR fallbacks including: single currency euro exposure drafts; exposure draft wording for the Bloomberg EURIBOR-€STR Spread; and a guidance note on fallbacks to interbank term rates and LMA documentation.

We are requesting feedback on the exposure draft documentation, particularly in respect of its use in practice, by close of business on Friday 28 February 2025.  

On 23 September 2024, we published the first in a series of Leveraged Focus notes. These are intended to promote a greater understanding of the terms of the typical TLB product and the potential pressure points associated with TLB terms. 

The first Leveraged Focus note is available here and highlights the key differences between a TLB and LMA leveraged covenant package. This sets the scene for further upcoming notes on key documentary topics including liability management exercises, transferability, financial covenants and much more.

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.

We are pleased to have published a new guidance note on untied ECA financing, updated buyer credit documentation, and a supporting statement from the LMA’s Export Finance Working Party. 

Given the single currency nature of the buyer credit facility, there are now three variations of the buyer credit facility agreement:

• Agreement for compounded RFR use upfront (compounded SONIA and compounded SOFR)
• Agreement for term RFR use upfront (term SOFR and term SONIA)
• Agreement for use of EURIBOR with fallbacks to compounded €STR

We have also published a new term SONIA commentary. The User Guide has also been expanded to cover commonly discussed areas. The new guidance and revised documentation can be accessed on the Export Finance section of the Documents Index page.

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.