The facility agreements show the main design concepts and elements and calculation methods needed to move from IBOR referencing to a relevant RFR. APLMA does not recommend and support a specific pricing or calculation method and finds that facility agreements are not a standard position on these issues due to the lack of market practices. While the aforementioned problems are not only in the Asian syndicated lending market, Asia has only slowly developed market practices for these issues relative to the rest of the world. With the recent release of the facilities agreements, the Asian syndicated credit market is expected to quickly catch up with the LibOR Transition Highway. Advice to market participants who are considering entering into business with their Asian counterparts – close up! Banks should stop abandoning new LIBOR-related products that will mature after 2021 Banks should be able to offer products related to the LIBOR-related RFR. In the accompanying guide to the facilities agreements, APLMA highlighted the main issues to be taken into account by market participants with regard to the transition from LIBOR to RFR: [1] Reform of interest rate benchmarks, Hong Kong Monetary Authority, 13 November 2020 The Hong Kong Monetary Authority, in agreement with the Treasury Markets Association , outlined the next steps for the transition of banks in Hong Kong:[1] APLMA welcomes comments and comments on the facility agreements by December 4, 2020. Based on these comments, APLMA intends to provide the recommended forms as soon as possible. This will greatly help institutions achieve the various transitional IBOR objectives set by regulators. Appropriate recidivism provisions should be included in all newly issued libor contracts expiring after 2021 (given the entry into force of the ISDA case case protocol on IICDA, this transitional kilometre for derivative contracts can be achieved by the end of January 2021).

: DAILY daily composites and soFR single daily.