SBI executes inter-bank money market transactions linked to SOFR

The State Bank of India (SBI) has executed two inter-bank short term money market transactions with pricing linked to secured overnight financing rate (SOFR). SOFR is an identified replacement of USD LIBOR (London Inter-Bank Offered Rate) which is expected to be phased out at the end of 2021. The transactions were executed by the bank through its Hong Kong branch, a release said.

"The transaction demonstrates SBI's progress in aligning its systems and processes to embrace Alternate Reference Rates (ARRs).  The sunset for LIBOR has been triggered by the decision of Financial Conduct Authority (FCA) in the UK not to compel contributing banks for LIBOR calculation after December 2021.