The transactions were carried out through the bank’s international offices with a corporate client. Transaction value will be small in line with industry trends.
“The transaction value will be between $15-20 million,” said a market source.
These transactions point to the Bank’s readiness towards a smooth transition from USD LIBOR (London Interbank Offered Rate) to transactions linked to Alternate Reference Rates (ARR). In January 2021, the bank carried out its first interbank money market transaction involving SOFR, which has been identified as a replacement for USD LIBOR.
B Prasanna, Group Head – Global Markets, Sales, Trading & Research, ICICI Bank said, “With the measures announced by the regulators globally, there is an increased shift in the markets towards ARR linked products.” “As the expiry deadline approaches, liquidity in ARR-linked products will increase and ICICI Bank is set to expand its product suite to meet the requirements of customers.