Synthetic USD LIBOR for 6.409% preference shares

Standard Chartered PLC

19 June 2023

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (A) IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) (THE "UNITED STATES" OR THE "U.S.") OR TO ANY "U.S. PERSON" AS DEFINED IN REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OTHER THAN A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OR (B) IN OR INTO ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO RELEASE, PUBLISH OR DISTRIBUTE THIS ANNOUNCEMENT.

Standard Chartered PLC
19 June 2023

STANDARD CHARTERED PLC
(a public limited company incorporated in England and Wales)

Announcement on move to synthetic 3 month USD LIBOR for Standard Chartered PLC's 6.409% non-cumulative redeemable preference shares (the "6.409% Preference Shares")

On 4 January 2023, Standard Chartered PLC (the "Company") announced, amongst other things, that a special resolution that was proposed to amend the terms and provisions of the 6.409% Preference Shares, in order to transition the dividends from a three month U.S. dollar LIBOR rate to SOFR-based rate, had not passed and so would not be implemented.

On 3 April 2023[1], the  Financial Conduct Authority (the "FCA") announced  that it intends to use its powers under the UK Benchmarks Regulation[2] to designate certain LIBOR settings, including three month U.S. dollar LIBOR as "Article 23A Benchmarks" with effect from 1 July 2023 and consequently, that it intends to require that LIBOR's administrator continues the publication of these U.S. dollar-denominated LIBOR settings using a 'synthetic' methodology ("Synthetic U.S. dollar LIBOR ") following the end of June 2023 for a transition period which is currently expected to end on 30 September 2024 (such period, as may be extended by the FCA,  the "Synthetic USD LIBOR Transition Period").  The 6.409% Preference Shares are within the scope of the legacy instruments in respect of which Synthetic U.S. dollar LIBOR may apply.  Should these proposals be implemented in accordance with the FCA announcements made to date, the rate of dividends payable on the paid up amount of the 6.409% Preference Shares will be calculated for dividend periods falling within the Synthetic USD LIBOR Transition Period, commencing with the dividend period commencing 31 July 2023, by reference to three month U.S. dollar LIBOR as determined in accordance with Synthetic U.S. dollar LIBOR.

The Company is continuing to consider appropriate next steps with regards to the dividend rate that will be applicable to the 6.409% Preference Shares following the end of the Synthetic USD LIBOR Transition Period.

For further information, please contact:

Daniel Banks
Managing Director, Global Head, Debt Investor Relations
1 Basinghall Avenue
London
EC2V 5DD
020 7885 6329

Shaun Gamble

Executive Director, Group Media Relations

1 Basinghall Avenue

London

EC2V 5DD

020 7885 5934

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[1] https://www.fca.org.uk/news/news-stories/fca-announces-decision-synthetic-us-dollar-libor

[2] Regulation (EU) No. 2016/1011 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

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