Progress in LIBOR transition continues to unfold, with cessation dates of December 31, 2021 in the UK and June 30, 2023 in the US. Those dates are now are extremely unlikely to move given the latest announcements from the UK’s FCA (for a guide to acronyms used in this article, see below) and ICE. Simply put, SOFR and SONIA are rapidly coming into force.Progress on USD LIBOR in recent months has included ARRC recommendations around hardwired fallback provisions and triggers.
One of the most essential elements to ensure a successful post-settlement outcome is the establishment and administration of an effective, comprehensive settlement trust fund or funds. Based on our experience with administering two environmental mitigation trusts funded with the money from the 2016 Volkswagen AG settlements, we believe there are three core skill areas that are vital to a trustee’s success.
Emerging from 2020 & looking forward to 2021.2020 saw a high volume of activity in the renewable energy sector, as well as a meaningful uptick in the number of private placements being done.Renewables can be expected to drive the project finance market again in 2021, especially with tax credits now extended. There remains a strong interest in investing that encompasses ESG principles (Environmental, Social and Governance).