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Companies with loans that reference the London Interbank Offered Rate (LIBOR) should take action now to renegotiate with lenders before this benchmark rate becomes unavailable next year, or face the possibility of legal disputes.

Businesses should identify any loans and other contracts that use LIBOR, and discuss with banks on how to transition to an alternative rate. They should also consider using alternative reference rates for any new contracts.

Since its introduction in the 1970s, LIBOR has become the most widely used interest rate benchmark in the world, in financial products ranging from business loans to structured derivatives. Financial contracts referencing LIBOR are worth an estimated US$300-400 trillion worldwide.

Despite its significance, LIBOR will likely cease to exist after the end of 2021, so market participants should start to prepare for the transition.

Alternative reference rates include the Secured Overnight Financing Rate (SOFR) for US Dollar LIBOR and the Sterling Overnight Index Average (SONIA) for Sterling LIBOR. As the end of 2021 approaches, the transition from LIBOR to alternative reference rates has become a major challenge for central banks and regulators, industry bodies as well as banks and corporates.

As an international financial centre, Hong Kong has significant exposure to LIBOR. In particular, the majority of US Dollar loan contracts between Hong Kong banks and their corporate clients are linked to US Dollar LIBOR, and this has given rise to two major issues ahead of the cessation of LIBOR, namely, how to amend legacy loan contracts referencing US Dollar LIBOR, and how to use SOFR, an overnight repo rate, in new loan contracts.

At this seminar, jointly organized by APLMA, HKGCC, HKMA and TMA, a panel of expert speakers will discuss ways to transition away from LIBOR.

Panelists:

●   Mr Andrew Ferguson, Chief Executive Officer, Asia Pacific Loan Market Association
●   Mr Andrew Fung, Chief Financial Officer and Executive Director, Henderson Land Development Company
●   Mr Ashish Sharma, Managing Director, Head of Loan Syndications, APAC and Global Banking and Markets, HSBC
●   Ms Nathalie Hobbs, Asia Managing Partner, Linklaters


Tentative Rundown:

1400 - 1405   Welcome Remarks by Mr. Leland Sun, Deputy Chairman, Hong Kong General Chamber of Commerce
1405 - 1415     Opening Remarks by Ms. Clara Chan, Executive Director (Monetary Management), Hong Kong Monetary Authority
1415 - 1435     Presentations by Panelists
1435 - 1530    Panel Discussion
1530 - 1545    Q&A Session



Please refer to the following on the virtual seminar:
-   Upon successful registration of the event, a unique webinar link will be sent to your registered email 2 days before the event. Please refer to the troubleshooting guide here should you experience any issues in locating the webinar link.
-   Instructions on downloading Zoom and joining a webinar can be found here. We suggest that you familiarize yourself with the software in advance of the webinar.
-   Please log in 15 minutes (at 1:45pm) before the event begins, through the link that will be sent to your registered email.

DISCLAIMER
Speakers' presentations at this event are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed during this event are those of the speakers and participants and, unless expressly stated to the contrary, are not the opinion or position of the Hong Kong General Chamber of Commerce, its members, or its committees. The Chamber does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented. Attendees should note that, with the approval of speakers, this event may be recorded, and possibly published on the Chamber's website in audio and/or video formats without further notice.

Recording, duplication or distribution of the contents of the online event is prohibited without prior written permission from the Chamber.

Speaker(s)

Moderator:

Mr. Leland Sun, Deputy Chairman, Hong Kong General Chamber of Commerce

Leland is Managing Director of Pan Asian Mortgage Company, an innovative non-banking financial services company which finances residential properties in Hong Kong.

Previously, he was appointed by the Financial Secretary of the Hong Kong SAR Government as the first Chief Operating Officer of the Hong Kong Mortgage Corporation (HKMC) and was a Senior Managing Director, Bear Stearns Asia Ltd. and an Executive Director, Goldman Sachs (Asia) Ltd.

Currently, Leland is an independent non-executive director of Chevalier International Holdings Ltd (25), Quanzhou Huixin Micro-Credit Co. Ltd. (1577) and Mizuho Securities Asia Ltd.

Leland is Deputy Chairman, Hong Kong General Chamber of Commerce (HKGCC) and Chairman, Investment Committee and Membership Committee. He was elected as one of the 1,200 members of the 2017 Hong Kong Election Committee (Commercial First Subsector) which selected Hong Kong's current Chief Executive.

Leland graduated from the UCLA Anderson School of Business and received the Outstanding Alumni Service Award in 2017. He is also a Board member of the Fink Center for Finance & Investments and UCLA Asia Advisory Council member.

Leland was born in Hong Kong and is fluent in Putonghua.

Panelists:

Mr. Andrew Ferguson, Chief Executive Officer, Asia Pacific Loan Market Association

A veteran of the banking industry (a career spanning 39 years with Lloyds, Bank of America, BNP Paribas, HSBC, ANZ), Andrew established a consulting business in Hong Kong in 2012, as a result which he delivered the APLMA Certificate Course in Hong Kong, Singapore and Sydney in 2016 and 2017 and then undertook an intensive research project for the APLMA in 2017. He was appointed as Advisor to the Board of APLMA in February 2018 and appointed as Chief Executive Officer in November 2018.

Andrew was educated at Southampton University in England, is an Associate of the Chartered Institute of Banking and a Fellow of the Hong Kong Institute of Directors and twice served as the Chairman of the Capital Markets Association in Hong Kong.

Mr. Andrew Fung, Chief Financial Officer and Executive Director, Henderson Land Development Company Limited

Mr Fung Hau Chung, Andrew has been the Chief Financial Officer of the Company since 1 August 2017 and an Executive Director of the Company since 8 June 2020. He holds the Bachelor of Arts Degree from The University of Hong Kong and the Honorary Fellowship awarded by Lingnan University.

Mr Fung served as an executive director and the Head of Global Banking and Markets of Hang Seng Bank Limited, a listed company, before he stepped down from such positions in July 2017. He has been engaged in the banking industry since graduation, serving at Societe Generale, The Hongkong and Shanghai Banking Corporation Limited, Commonwealth Bank of Australia, Hong Kong Branch and DBS Bank (Hong Kong) Limited. He has 38 years of experience in banking, capital markets and asset management. He is the Professor of Practice (Finance) in the School of Accounting and Finance of The Hong Kong Polytechnic University, the Adjunct Professor of The Hang Seng University of Hong Kong and a member of the school management committee of Buddhist Tai Hung College.

Mr Fung is currently the chairman of the Hospital Governing Committee of Pamela Youde Nethersole Eastern Hospital, a member of the Court of The University of Hong Kong, a client representative director of OTC Clearing Hong Kong Limited and a trustee of The D.H. Chen Foundation. Mr Fung had previously been a board member of the Hospital Authority, a board member of the Airport Authority Hong Kong, a director of The Hong Kong Mortgage Corporation Limited, an associate member of the Central Policy Unit of the Government of the Hong Kong Special Administrative Region, a lay council member of the Hong Kong Institute of Certified Public Accountants.

Mr. Ashish Sharma, Managing Director, Head of Loan Syndications, APAC and Global Banking and Markets, The Hongkong and Shanghai Banking Corporation Limited

Ashish Sharma is Managing Director and the Head of Loan Syndications for Asia Pacific, based in Hong Kong. He is responsible for the underwriting and distribution of all syndicated loans arranged by HSBC across the Asia-Pacific region.

Ashish joined HSBC in August 2018 from Credit Suisse where he was head of loan syndication for Asia Pacific since April 2013, and was responsible for underwriting risk decisions and syndication of all loans in the Asia Pacific Financing Group. Prior to that, he worked for over 15 years in Bank of America Merrill Lynch covering multiple roles across syndication, structured risk management and credit risk in Hong Kong, New York, Taipei and India.

Ashish has been involved in arranging several landmark complex syndicated financings with cumulative deal volume of over USD 300 billion in Asia Pacific, including several landmark and award-winning transactions across multiple sectors, including energy, mining, telecommunications, media and real estate, as well as across capital structures targeting different investor classes.

Ashish is the Treasurer, member of Executive Committee and Board member of the Asia Pacific Loan Market Association (APLMA). Ashish holds an MBA from Indian Institute of Management, Bangalore in India, where he was awarded the institute Gold Medal. He also holds a Bachelor of Technology from Indian Institute of Technology, Delhi in India.

Ms. Nathalie Hobbs, Asia Managing Partner, Linklaters

Nathalie is Linklaters' regional managing partner for Asia and has been a partner of Linklaters since 2001. Nathalie has over 20 years' experience in acquisition financing in both Europe and Asia.

Before moving to Hong Kong, Nathalie was a partner in the firm's Paris office, working principally on leveraged finance deals for private equity sponsors and banks. She was also one of the lead partners in a number of restructurings, including the first ever use of the safeguard procedure in the context of a debt restructuring.

In Asia, Nathalie advises lenders (international and regional banks) and borrowers (corporates and funds) on acquisition financing, structured lending, leveraged finance, real estate finance and share-backed financings. Among the transactions she has worked on are the acquisition of Belle International by Hillhouse and CDH and I Squared's acquisition of Hutchison Global Communications.

Language English
Date and Time 2020/12/01 14:00 to 15:45
Venue Online via Zoom
Media Closed to media
Enquiries Karen Au
Tel: 28231200
Email: karen@chamber.org.hk
Fee Free of Charge
Members Only
Notes - Booking transfer is allowed for corporate members with advanced notice, walk-ins are normally not accepted.
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