On 1 February 2014, ICE Benchmark Administration Limited (IBA) replaced the British Bankers’ Association (BBA) as the administrator of the London Interbank Offered Rate (LIBOR).

The IBA is an autonomous entity within the IntercontinentalExchange Group and was recommended to take over the administration of the LIBOR as part of the Wheatley Review of the LIBOR framework.  To safeguard a smooth transition, there is to be no change to the calculation of the LIBOR for the time being.

Lenders should consider updating their loan documents so that they now reference ICE LIBOR instead of BBA LIBOR. To adequately reflect the new LIBOR arrangements, the following definition of ‘Screen Rate’ could be adopted in place of the existing formulation:

'Screen Rate means:

  • in relation to LIBOR, the London interbank offered rate administered by the ICE Benchmark Administration (or any other person which takes over the administration of that rate) for the relevant currency and period displayed on the appropriate page of the [Reuters/Bloomberg] screen; and…'

The above is largely consistent with a guidance note published by the LMA on 11 March 2013.