Dear valued client,

We are writing to you as you may have or may be having certain exposures to Interbank Offered Rates (hereinafter “IBORs”) with United Overseas Bank (Malaysia) Bhd and/or its branches (hereinafter “Bank” or “we” or “us”) that extend beyond 31 December 2021, particularly with respect to ISDA Master Agreements, Global Master Repurchase Agreements, Credit Support Documentation as well as the trades subsumed/covered thereunder (hereinafter collectively “Affected Documents and Trades”).

The cessation of IBORs presents significant and considerable risks, and notably, the London Interbank Offered Rate for the various applicable currencies (hereinafter collectively “LIBOR”) is currently expected to be phased out by the end of 2021. Hence, it is important that you consider your transition approach in a timely manner.

For clarity, the Affected Documents and Trades which rely on IBORs and extend beyond 2021, whether existing or new, may not perform as you would expect them to both when the relevant IBOR ceases and potentially before. Subject to individual contract terms, uncertainty after the end of 2021 means that, amongst other things, derivative cash flows paid and received are likely to change, and in some cases it may be unclear how amounts payable will be determined. While a number of the Affected Documents and Trades may include robust fallback provisions, which can reduce but not always eliminate such risks, many however do not.

In this context, ISDA Inc. had since:-

  1. undertaken work to implement more robust fallback language for key IBORs used in ISDA-based derivative contracts;

  2. amended and updated its 2000 and 2006 ISDA Definitions through fallback supplements (hereinafter “ISDA IBOR Fallbacks”) to include more robust fallback language for new Affected Documents and Trades, applying newly identified (by the industry) risk-free rates or near risk-free rates (hereinafter “RFRs”) if key IBORs (including LIBOR) are permanently discontinued, and also in the case of LIBOR, when LIBOR becomes non-representative of its underlying market prior to its actual permanent discontinuation; and

  3. published its ISDA IBOR Fallbacks Protocol (hereinafter “Protocol”) on 23 October 2020, which allows adhering parties to incorporate the new RFR fallback language into legacy/existing Affected Documents and Trades with other adhering parties. The Protocol will come into effect on 25 January 2021.

Next Steps

  1. In line with recent statements from regulators, we would encourage you to adhere to the Protocol as soon as possible, so as to effect transition from IBORs to RFRs for your legacy/existing Affected Documents and Trades with the Bank smoothly.

  2. If and where the above is not achievable at your end for whatever reason, the Bank will contact you, in due time, with a bilateral amendment letter/agreement for the purpose of such transition from IBORs to RFRs.

    If you have any query on any aspect of the contents of this Notification and/or wish to notify the Bank of your preferred approach vis-à-vis IBOR Transition for your Affected Documents and Trades with us, you may contact us at:


    With an understanding of your transition plans, the Bank will be better able to assist you in mitigating your exposures with respect to your bilateral legacy/existing Affected Documents and Trades with us.

  3. We strongly encourage you to consider the above and the potential impact on your future liquidity and hedging transactions and requirements. We also encourage you to seek independent advice from your professional advisers/experts with regard to your plans for both new and legacy Affected Documents and Trades with us.

You may also refer to the below for a general overview of IBOR transitioning and frequently asked questions:

  1. the Bank’s website; and/or

  2. ISDA Inc.’s website,

as well as the attached Frequently Asked Questions for more specific information in relation to IBOR Transition for your Affected Documents and Trades with us.

Should you not be the correct party at your organisation to get in touch with regarding the IBOR reform in respect of the Affected Documents and Trades, we would appreciate if you could provide us with the email address of the relevant contact at:


Finally, please note that this Notification is not intended to be complete or exhaustive with respect to the subject matter hereof, and does not in any way change any terms and/or conditions governing your relationship with the Bank. This Notification also does not constitute any form of advice or recommendation from the Bank, nor is the Bank assuming any responsibility whatsoever in rendering any advice or providing any recommendation.

For & on behalf of
United Overseas Bank (Malaysia) Bhd
Business Assurance and Legal Documentation
Global Markets