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Standard Chartered has completed the first deal using Risk Free Rate (RFR) with their clients, Akij Ceramics Ltd and Unilever Bangladesh Ltd.
The deal was completed in line with detailed guidance from Bangladesh Bank on how to set the new rates as a replacement for The London Inter-Bank Offer Rate (LIBOR), a press release said on Sunday.
The London Inter-Bank Offer Rate (LIBOR) is the average interbank lending rate on an unsecured basis for banks in London.
“The completion of the first RFR based trade finance transactions with Akij and Unilever is the outcome of the significant collaboration that the Bank has facilitated to prepare for the transition ahead of the effective date of 1st January 2022,” said Standard Chartered Bank Bangladesh Chief Executive Officer Naser Ezaz Bijoy.
Akij Ceramics Ltd and Unilever Bangladesh Ltd were the first two clients who accepted the offer to complete Trade Financing Transaction using the RFR. The Bank is also actively engaging with their other clients to familiarize them with the new rates. The aim is to ensure that the transition for the clients is smooth.
