Today's LIBOR Rates
1 M |
0.25781 |
 |
3 M |
0.29281 |
|
6 M |
0.49363 |
|
1 YR |
0.83488 |
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July 24, 2010
This week saw another worldwide series of major credit facilities and bond issuances with rates tied to the LIBOR index. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
On Monday, Golub Capital BDC, a business development company based in Chicago, announced a $300 million term debt securitization. A private note offering facilitated the transaction with a rate of LIBOR plus 2.40%.
On Tuesday, Reuters reported that National Australia Bank, the country’s leading lender, plans to sell five-year Samurai bonds, so-called financial instruments presented to the Japanese market by international institutions. The issue will split into two tranches, with one tranche at a floating rate of Three-Month Yen LIBOR plus 68 to 75 basis points.
Reuters also reported on Tuesday that Metinvest, the Ukraine’s largest consortium of iron ore concentrate and raw steel producers, has increased its pre-export financing from $300 million to $700 million. Cost of funds on the loan will be LIBOR plus 5.50%. In 2007, Metinvest received a $1.5 billion loan with a $500 million tranche at a rate of LIBOR plus 1.70%.
On Wednesday, Bloomberg News reported that Banco Santander, the largest lender in Spain, had issued $50 million in range accrual notes with LIBOR-based rates for the first half of their 10-year term. In this preliminary stage, the notes pay LIBOR plus 2.15%, as long as LIBOR stays between zero and 7%. The article notes that LIBOR has not exceeded 7% in nearly 20 years.
Per Reuters, Rural Electrification Corporation (REC), a nationalized lender in India, is seeking to raise $1 billion to fund power projects. $400 million will come from overseas borrowing at a rate of LIBOR plus 1.76%. REC is also assigned HBSC to secure a $70 million loan at LIBOR plus 2.10%.
On Thursday, The Wall Street Journal reported that Argentina will loan Chile $300 million to help in its earthquake recovery. The loan will be in two tranches: $200 million at LIBOR plus 2.00% for the purchase of Argentina capital equipment; $100 million at LIBOR plus 1.75%.