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Libor Transition
Libor Transition
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Financing Solutions Capital And Funds Under Administration
LIBOR (London Inter-Bank Offered Rate) has been the most widely used interest rate benchmark worldwide and played a central role in the global financial system for decades

LIBOR rates represented the average rate at which a panel of banks could obtain wholesale unsecured funding, but due to concerns regarding  its integrity, credibility, and vulnerability to manipulation, regulators determined that it was no longer a representative  benchmark rate and should not be used going forward. As a result, in 2017 global regulatory bodies embarked on a global IBOR reform effort and developed a phased transition approach from LIBOR to alternative reference rates for all currencies and tenors.

At the IDB we have proactively and strategically prepared the bank and our member countries to navigate this significant market-wide transition.

The majority of the Bank's financial instruments, including loans, debt, investments, and derivatives, were tied to US dollar LIBOR. To comply with regulatory requirements, the IDB transitioned all its financial products to the Secured Overnight Financing Rate (SOFR), the rate selected as the replacement for LIBOR in US dollar-based instruments. The final cessation date for US dollar LIBOR tenors was June 30, 2023.

This web page serves as a central location for information on LIBOR transition generally, as well as specific information on IDB’s transition from LIBOR to SOFR. Key resources and links are below.

Libor Transition Timeline and ARRC Transition Plan
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Libor Transition Q&A
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ARRC Market Report (July 31,2023 Meeting Readout)
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Updated User's Guide to SOFR (February 2021)
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FAQs - Key Publications by the Alternative Reference Rates Committee for use of SOFR
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SOFR Data published by the Federal Reserve Bank of New York
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Key Derivatives market information- ISDA Fallback Protocol 2020
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FAQs to ISDA LIBOR Fallbacks Protocol
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London Interbank Offered Rate (LIBOR) transition - Module I

Did you know that the London Interbank Offered Rate, also known as LIBOR, will undergo big changes? This video will provide you with the background to understand the complexity and challenges facing the financial markets as the 2021 LIBOR transition deadline approaches.

LIBOR Transition Update for 2022 - Module II

The London Interbank Offered Rate, also known as LIBOR, is being phased out in a global financial market transition. This material will provide you with updated information on global regulatory actions, market updates on LIBOR and replacement rates, and details on how the IDB is implementing LIBOR transition for loans and borrowers as well as the Bank’s funding.

Financial Statements Interest Rates and Charges List of IDB Bonds
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