StanChart partially wins UK court case over replacement rate for Libor

LONDON (Reuters) - Standard Chartered (OTC:SCBFF ) on Tuesday won its bid in a London court to replace the financial benchmark it used to set dividend rates for some shares, in an early case over the transition away from Libor.

The bank wanted to change the three-month US dollar Libor interest rate which was used to set dividends on some preference shares to one based on the Secured Overnight Financing Rate (SOFR), despite opposition from a group of investors.



The High Court ruled on Tuesday that Standard Chartered's proposed new rate based on SOFR was a "reasonable alternative rate" on which to base dividend payments.

Judges Julian Flaux and David Foxton said Standard Chartered's SOFR-based alternative is "a well-established rate used across the financial markets".

Source: Investing.com