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Definition
LIBOR was, for decades, the reference rate that variable loans were priced against — the estimated rate at which banks could borrow from one another. After manipulation scandals and a shift to transaction-based benchmarks, it was withdrawn and SONIA took its place for sterling.
In plain terms
You may still see LIBOR mentioned in older loan documents. New and repapered facilities reference SONIA instead.
Why it matters for your company
If you hold a legacy LIBOR facility, check it has been transitioned to a SONIA-based rate — the switch changes how your variable rate is built. See reference rate.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.