Singapore Overnight Rate Average (SORA)

Proceeds from the loan will be applied towards general corporate purposes of Olam and its subsidiaries.

The loan, which will be available from September 3, allows SME business property owners to borrow up to 80% of their property value and stretch their repayment tenor to up to 25 years.

The dual tranche loan references both the Singapore Overnight Rate Average (SORA) and the Secured Overnight Financing Rate (SOFR), making it the first of its kind in Singapore.

The notes will be issued by OCBC Bank, acting through its Sydney Branch, and are expected to be Repo Eligible by the Reserve Bank of Australia, said OCBC Bank in a press release on September 1.

This is the agri-business industry’s first SORA loan coupled with an IRS.

Singapore is blazing a trail for Libor replacement in Asia, as its central bank becomes the first government entity in the region to auction notes based on a new risk-free rate.

MAS says the initiatives aim to speed up greater activity in SORA markets, safeguard the benchmark’s integrity, and enhance market confidence in the newly-introduced benchmark rate.

OCBC Bank has launched Singapore’s first home loan package that references the Singapore Overnight Rate Average (SORA). This is another milestone for the bank as the industry transitions towards adopting SORA as a new interest rate benchmark.

The loan facility agreement, which references the Singapore Overnight Rate Average (SORA), is Singapore’s first, as in the industry moves towards adopting SORA as the new interest rate benchmark for the Singapore dollar cash and derivatives markets.

SINGAPORE (Aug 30): Singapore’s banking body on Friday said it would shift away from using Singapore dollar swap offer rates (SOR) as a key lending benchmark due to likely discontinuation of the London Interbank Offered Rate, which heavily influences SO