14 Oct 2020
Risk Free Rate Syndicated Loan Facility for Tesco plc
Risk Free Rate Syndicated Loan Facility for Tesco plc - Tesco, a leading UK supermarket chain, became one of the first companies to enter into a credit line linked to the new benchmark lending rates which are replacing LIBOR. Its new syndicated revolving credit facility will be linked to the Secured Overnight Financing Rate (SOFR) for US dollars and the Sterling Overnight Index Average (SONIA) for sterling. Additionally, the loan is also notable in that Tesco will benefit from lower interest rates if the company delivers environmental targets aligned with three sustainability linked KPIs related to emissions, renewable energy and food waste. (Allen & Overy advised BNP Paribas as the Sole Coordinator and the Sustainability Coordinator and NatWest as Risk Free Rate Manager and Facility Agent).
Editorial
14 Oct 2020 Risk Free Rate Syndicated Loan Facility for Tesco plc
Risk Free Rate Syndicated Loan Facility for Tesco plc - Tesco, a leading UK supermarket chain, became one of the first companies to enter into a credit line linked to the new benchmark lending rates which are replacing LIBOR. Its new syndicated revolving credit facility will be linked to the Secured Overnight Financing Rate (SOFR) for US dollars and the Sterling Overnight Index Average (SONIA) for sterling. Additionally, the loan is also notable in that Tesco will benefit from lower interest rates if the company delivers environmental targets aligned with three sustainability linked KPIs related to emissions, renewable energy and food waste. (Allen & Overy advised BNP Paribas as the Sole Coordinator and the Sustainability Coordinator and NatWest as Risk Free Rate Manager and Facility Agent).