2023 - Consultation Paper on Adjustment Spreads for the Conversion of Legacy SIBOR Loans to SORA

This consultation paper sets out the recommendations for the setting of adjustment spreads for the conversion of legacy Singapore Interbank Offered Rate (“SIBOR”) loans to a Singapore Overnight Rate Average (“SORA”) reference rate. This is to account for the inherent differences between SIBOR, which incorporates term and credit risk premium, and the near risk-free overnight interest rate benchmark, SORA, that would replace it. The public consultation paper and media release can be found here:

This Consultation closed on 28 April 2023.

2020 - Consultation Paper on SIBOR Reform and the Future Landscape for SGD Interest Rate Benchmarks

This consultation paper reviews the results of the transitional testing of a new waterfall methodology for the SGD Singapore Interbank Offered Rate (“SIBOR”), and examines the options for the future landscape for SGD interest rate benchmarks. The paper identifies the Singapore Overnight Rate Average (“SORA”) – particularly Compounded SORA – as the most suitable and robust alternative to SIBOR and seeks feedback on several issues relating to the proposed transition to SORA. The public consultation paper and media release can be found here:

ABS, SFEMC and SC-STS published on 11 December 2020 their responses to the feedback received on the 29 July 2020 consultation report. The response paper sets out the plans to discontinue all remaining tenors of SIBOR in a few years, starting with the 6M SIBOR on 31 March 2022, and the 1M and 3M SIBOR on 31 December 2024. In addition to respondents’ acceptance for the discontinuation of SIBOR, there was also strong consensus among the respondents for a shift towards a SORA-centered SGD interest rate market. The response paper and media release can be found here:

2019 – Commencement of Transitional Testing for Enhanced SIBOR

ABS Benchmarks Administration Co Pte Ltd (“ABS Co.”) commenced transitional testing of a new waterfall methodology for SIBOR on 1 July 2019. This followed from ABS-SFEMC’s July 2018 announcement of key proposals to enhance SIBOR, by anchoring this benchmark to market transactions to the extent possible. The transitional testing was discontinued with effect from 1 December 2020, the last day for banks’ submissions was on 30 November 2020.

2017-2018 - Consultation Paper on the Evolution of SIBOR

This consultation paper sets out the proposals to strengthen the SGD Singapore Interbank Offered Rates (“SIBOR”) methodology, and seeks feedback on a range of issues.

ABS-SFEMC finalised the proposals to enhance SIBOR, following the joint public consultation to seek feedback on proposals to enhance SIBOR, which closed on 5 February 2018. The finalised proposals took into account the global guidance on interest rate benchmark reforms.