Be it paying for an overseas purchase or sending money to a studying child, Telegraphic Transfer is the perfect tool to send foreign currency overseas in a timely and secure manner. The benefits of TT are:
On Demand rates are applied when purchasing or selling of demand draft, foreign cheque and etc. It is a cheaper method for payments made overseas and funds are cleared through our correspondents in major cities around the world.
Private Property Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
MR1 |
6.25 |
MR2 |
6.45 |
MR3 |
5.50 |
MR4 |
5.50 |
MR5 |
6.35 |
MR6 |
5.75 |
MR7 |
5.70 |
HP1 |
6.65 |
MRR |
5.75 |
MVR |
6.25 |
HDB Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
HB1 |
4.75 |
HB2 |
4.25 |
HB3 |
3.50 |
HB4 |
4.00 |
HB5 |
4.75 |
HH1 |
6.35 |
HBD |
4.75 |
HB6 |
4.25 |
Commercial Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
CR1 |
4.68 |
CR2 |
5.18 |
CR3 |
5.68 |
CR6 |
6.58 |
CR7 |
5.60 |
HC1 |
7.65 |
CRR |
5.20 |
Malaysia Property Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
MBR |
7.00 |
Premium Financing Overdraft |
Board Rate ( % p.a. ) |
SGD |
4.20 |
USD |
5.60 |
Overdraft is currently not available for new applicants.
Premium Financing Term Loan |
Board Rate ( % p.a. ) |
SGD |
4.20 |
Please note that both Overdraft and Term Loan board rates will be adjusted to the aforementioned with effect from 1 Aug 2023.
The London Interbank Offered Rate (LIBOR), which serves as an interest rate benchmark across a number of financial products, is expected to be discontinued by the end of 2021. LIBOR (in all its underlying currencies) is expected to be replaced with overnight risk-free rates (RFRs).
The transition from LIBOR to RFRs arises from the global shift to improve the robustness and integrity of financial benchmarks. As part of this shift, the UK Financial Conduct Authority, which acts as the supervisory authority for LIBOR, stated that it would no longer compel banks to submit rates used for the calculation of LIBOR after 31 December 2021.
Alternative benchmark rates have been identified by the respective jurisdictions/countries to replace LIBORs and are set out in the table below. These risk free rates are all overnight interest rate benchmarks, and are based on actual transactions which may be secured or unsecured.
LIBOR reform currencies |
Other RFR reform currencies |
||||||
USD |
EUR |
GBP |
JPY |
CHF |
SGD |
THB |
|
Legacy benchmark to discontinue |
USD LIBOR |
EUR LIBOR |
GBP LIBOR |
JPY LIBOR |
CHF LIBOR |
Singapore Swap Offer Rate (SOR) |
Thai Baht Interest Rate Fixing (THBFIX) |
Proposed alternative RFR |
Secured Overnight Financing Rate (SOFR) |
Euro short-term rate (€STR) |
Sterling Overnight Index Average (SONIA) |
Tokyo Overnight Average Rate (TONA) |
Swiss Average Rate Overnight (SARON) |
Singapore Overnight Rate Average (SORA) |
Thailand Overnight Repurchase Rate (THOR) |
Administrator of RFR |
Federal Reserve of New York |
European Central Bank |
Bank of England |
Bank of Japan |
SIX Swiss Exchange |
Monetary Authority of Singapore (MAS) |
Bank of Thailand (BOT) |
As the Singapore Dollar Swap Offer Rate (SOR) utilises USD LIBOR in its computation, the expected discontinuation of LIBOR by end-2021 would impact the sustainability of SOR. The Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee (ABS-SFEMC) has identified the Singapore Overnight Rate Average (SORA) as the most suitable interest rate benchmark to replace SOR. SORA has been published by the Monetary Authority of Singapore since 2005.
Should our customers have loan(s) or derivatives contracts with us that reference LIBOR or SOR maturing after December 2021, this transition will impact them. This will require them transiting the LIBOR or SOR reference rate to the relevant RFRs of either SOFR for USDLIBOR or SORA for SGDSOR.
Our Bank’s representative or Relationship Manager will contact customers to assist customers with this transition, taking into account the industry’s guidance.
Customers may refer to the following websites to understand the current global reform, as well as the frequently asked questions on MAS and ABS’s websites for more information on the transition of SOR to SORA.
Monetary Authority of Singapore’s website on Interest Rate Benchmark Transitions:
https://www.mas.gov.sg/regulation/interest-rate-benchmarks-transition
UK Financial Conduct Authority’s website on transition from LIBOR:
The International Organisation of Securities Commissions’s website on a general background regarding benchmarks transition from LIBOR
The Association of Banks in Singapore’s (ABS) website on SOR to SORA transition:
https://abs.org.sg/benchmark-rates/sor-to-sora
https://www.iosco.org/library/pubdocs/pdf/IOSCOPD636.pdf
The Steering Committee for SOR & SIBOR Transition to SORA (SC-STS) and MAS have announced the following new industry timelines:
There is no immediate impact on your loan at this juncture. We will be reaching out to you in due course to assist with the transition. However, to prepare for the upcoming transition, you are encouraged to review the terms and conditions of your loan contract to understand the implications and the actions required.
We will be sending an official letter at the appropriate time for you to consider different options. You will also need to consider if replacing a SOR loan with other benchmarks impacts your related transactions (e.g. hedges) and the corresponding accounting and tax implications.
SORA and SIBOR are different SGD benchmarks that are determined on a different basis. In relation to the usage of SIBOR, ABS Benchmarks Administration Pte Ltd (ABS Co) is conducting a transitional testing for the enhanced SIBOR, and will provide an update after the transitional testing is completed in 2H 2020. The results of the transitional testing will be considered by the Steering Committee for SOR Transition to SORA (SC-STS), which will issue industry guidance in due course.
While SORA is not commonly used in the loan market, it is not new and has been published daily by the MAS since 2005. Over time, just like any new benchmark, e.g., when SOR was introduced, borrowers will become familiar with SORA, and its use in loans and other cash or derivatives products will increase.
When SOR/LIBOR is discontinued, we will no longer be able to calculate your interest payment using SOR. Instead, your loan interest payment will be calculated using a ‘fallback’ rate or other alternative provisions specified in the terms and conditions of your loan contract. You should start preparing for the transition as early as possible by reviewing the terms and conditions of your loan contract to understand the consequential implications and actions required. We will be reaching out to you in due course to assist in the transition, including, where not provided for in your current contract, updated terms and conditions. You are encouraged to review these updated terms and conditions and seek any clarification you need from our Bank representative or your Relationship Manager.
The transition to a RFR could lead to changes to your loan repayment, which impacts the calculation methodology of the loan repayment amount, besides this, it will also depend on market conditions at that point in time.
Yes, all SOR/LIBOR-pegged loans will be affected once SOR/LIBOR is discontinued. We will be reaching out to you in due course to assist in the transition, including, where not provided for in your current contract, updated terms and conditions. You are encouraged to review these updated terms and conditions and seek any clarification you need from our Bank representative or your Relationship Manager.
If you had hedged your SOR/LIBOR loan with an interest rate swap under ISDA, your interest rate swap would also have been likely pegged to SOR/LIBOR. You should review the terms of your interest rate swap contract as early as possible to understand the consequential implications once SOR/LIBOR is discontinued. There could be a hedging mismatch as the ISDA protocol for the replacement of SOR/LIBOR may not be in alignment with your loan. We will be reaching out to you to assist in the transition, including, where not provided for in your current contract, updated terms and conditions. You are encouraged to review these updated terms and conditions and seek any clarification you need from our Bank representative or your Relationship Manager.
You need to consult your tax adviser to advise you on the implications of the change in the benchmark once the Steering Committee Sub-group that was formed to provide guidance on accounting and tax-related issues, including hedge accounting, have published their guidance in due course.
If you wish to take up a new loan that references SOR/LIBOR, you should review the proposed new loan contract for terms that set out, or permit a switch or fallback to an alternative rate from SOR/LIBOR.
If you are keen to take up a new loan pegged to SORA, kindly contact your assigned Relationship Manager.
There are a few ways SORA could be used to calculate interest payments for corporate loans.
In other markets such as the US and the UK, banks have used the RFR rates calculated based on a compounded or simple average of the alternative overnight interest rate benchmark. Further update will be provided once the Singapore Steering Committee for SOR Transition to SORA (SC-STS) have issued their guidance on the matter.
The expected discontinuation of SOR only affects contracts that reference SOR, e.g. SOR floating rate loans. RHB will continue to offer other types of loans that fit customer needs, including fixed rate loans.
Reference:
SORA - Singapore Overnight Rate Average
SOR – Singapore Swap Offer Rate
LIBOR – London Inter-Bank Offered Rate
Be it paying for an overseas purchase or sending money to a studying child, Telegraphic Transfer is the perfect tool to send foreign currency overseas in a timely and secure manner. The benefits of TT are:
On Demand rates are applied when purchasing or selling of demand draft, foreign cheque and etc. It is a cheaper method for payments made overseas and funds are cleared through our correspondents in major cities around the world.
Private Property Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
MR1 |
6.25 |
MR2 |
6.45 |
MR3 |
5.50 |
MR4 |
5.50 |
MR5 |
6.35 |
MR6 |
5.75 |
MR7 |
5.70 |
HP1 |
6.65 |
MRR |
5.75 |
MVR |
6.25 |
HDB Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
HB1 |
4.75 |
HB2 |
4.25 |
HB3 |
3.50 |
HB4 |
4.00 |
HB5 |
4.75 |
HH1 |
6.35 |
HBD |
4.75 |
HB6 |
4.25 |
Commercial Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
CR1 |
4.68 |
CR2 |
5.18 |
CR3 |
5.68 |
CR6 |
6.58 |
CR7 |
5.60 |
HC1 |
7.65 |
CRR |
5.20 |
Malaysia Property Board Codes
Reference Rate |
Current Interest Rate ( % p.a. ) |
MBR |
7.00 |
Premium Financing Overdraft |
Board Rate ( % p.a. ) |
SGD |
4.20 |
USD |
5.60 |
Overdraft is currently not available for new applicants.
Premium Financing Term Loan |
Board Rate ( % p.a. ) |
SGD |
4.20 |
Please note that both Overdraft and Term Loan board rates will be adjusted to the aforementioned with effect from 1 Aug 2023.
The London Interbank Offered Rate (LIBOR), which serves as an interest rate benchmark across a number of financial products, is expected to be discontinued by the end of 2021. LIBOR (in all its underlying currencies) is expected to be replaced with overnight risk-free rates (RFRs).
The transition from LIBOR to RFRs arises from the global shift to improve the robustness and integrity of financial benchmarks. As part of this shift, the UK Financial Conduct Authority, which acts as the supervisory authority for LIBOR, stated that it would no longer compel banks to submit rates used for the calculation of LIBOR after 31 December 2021.
Alternative benchmark rates have been identified by the respective jurisdictions/countries to replace LIBORs and are set out in the table below. These risk free rates are all overnight interest rate benchmarks, and are based on actual transactions which may be secured or unsecured.
LIBOR reform currencies |
Other RFR reform currencies |
||||||
USD |
EUR |
GBP |
JPY |
CHF |
SGD |
THB |
|
Legacy benchmark to discontinue |
USD LIBOR |
EUR LIBOR |
GBP LIBOR |
JPY LIBOR |
CHF LIBOR |
Singapore Swap Offer Rate (SOR) |
Thai Baht Interest Rate Fixing (THBFIX) |
Proposed alternative RFR |
Secured Overnight Financing Rate (SOFR) |
Euro short-term rate (€STR) |
Sterling Overnight Index Average (SONIA) |
Tokyo Overnight Average Rate (TONA) |
Swiss Average Rate Overnight (SARON) |
Singapore Overnight Rate Average (SORA) |
Thailand Overnight Repurchase Rate (THOR) |
Administrator of RFR |
Federal Reserve of New York |
European Central Bank |
Bank of England |
Bank of Japan |
SIX Swiss Exchange |
Monetary Authority of Singapore (MAS) |
Bank of Thailand (BOT) |
As the Singapore Dollar Swap Offer Rate (SOR) utilises USD LIBOR in its computation, the expected discontinuation of LIBOR by end-2021 would impact the sustainability of SOR. The Association of Banks in Singapore and the Singapore Foreign Exchange Market Committee (ABS-SFEMC) has identified the Singapore Overnight Rate Average (SORA) as the most suitable interest rate benchmark to replace SOR. SORA has been published by the Monetary Authority of Singapore since 2005.
Should our customers have loan(s) or derivatives contracts with us that reference LIBOR or SOR maturing after December 2021, this transition will impact them. This will require them transiting the LIBOR or SOR reference rate to the relevant RFRs of either SOFR for USDLIBOR or SORA for SGDSOR.
Our Bank’s representative or Relationship Manager will contact customers to assist customers with this transition, taking into account the industry’s guidance.
Customers may refer to the following websites to understand the current global reform, as well as the frequently asked questions on MAS and ABS’s websites for more information on the transition of SOR to SORA.
Monetary Authority of Singapore’s website on Interest Rate Benchmark Transitions:
https://www.mas.gov.sg/regulation/interest-rate-benchmarks-transition
UK Financial Conduct Authority’s website on transition from LIBOR:
The International Organisation of Securities Commissions’s website on a general background regarding benchmarks transition from LIBOR
The Association of Banks in Singapore’s (ABS) website on SOR to SORA transition:
https://abs.org.sg/benchmark-rates/sor-to-sora
https://www.iosco.org/library/pubdocs/pdf/IOSCOPD636.pdf
The Steering Committee for SOR & SIBOR Transition to SORA (SC-STS) and MAS have announced the following new industry timelines:
There is no immediate impact on your loan at this juncture. We will be reaching out to you in due course to assist with the transition. However, to prepare for the upcoming transition, you are encouraged to review the terms and conditions of your loan contract to understand the implications and the actions required.
We will be sending an official letter at the appropriate time for you to consider different options. You will also need to consider if replacing a SOR loan with other benchmarks impacts your related transactions (e.g. hedges) and the corresponding accounting and tax implications.
SORA and SIBOR are different SGD benchmarks that are determined on a different basis. In relation to the usage of SIBOR, ABS Benchmarks Administration Pte Ltd (ABS Co) is conducting a transitional testing for the enhanced SIBOR, and will provide an update after the transitional testing is completed in 2H 2020. The results of the transitional testing will be considered by the Steering Committee for SOR Transition to SORA (SC-STS), which will issue industry guidance in due course.
While SORA is not commonly used in the loan market, it is not new and has been published daily by the MAS since 2005. Over time, just like any new benchmark, e.g., when SOR was introduced, borrowers will become familiar with SORA, and its use in loans and other cash or derivatives products will increase.
When SOR/LIBOR is discontinued, we will no longer be able to calculate your interest payment using SOR. Instead, your loan interest payment will be calculated using a ‘fallback’ rate or other alternative provisions specified in the terms and conditions of your loan contract. You should start preparing for the transition as early as possible by reviewing the terms and conditions of your loan contract to understand the consequential implications and actions required. We will be reaching out to you in due course to assist in the transition, including, where not provided for in your current contract, updated terms and conditions. You are encouraged to review these updated terms and conditions and seek any clarification you need from our Bank representative or your Relationship Manager.
The transition to a RFR could lead to changes to your loan repayment, which impacts the calculation methodology of the loan repayment amount, besides this, it will also depend on market conditions at that point in time.
Yes, all SOR/LIBOR-pegged loans will be affected once SOR/LIBOR is discontinued. We will be reaching out to you in due course to assist in the transition, including, where not provided for in your current contract, updated terms and conditions. You are encouraged to review these updated terms and conditions and seek any clarification you need from our Bank representative or your Relationship Manager.
If you had hedged your SOR/LIBOR loan with an interest rate swap under ISDA, your interest rate swap would also have been likely pegged to SOR/LIBOR. You should review the terms of your interest rate swap contract as early as possible to understand the consequential implications once SOR/LIBOR is discontinued. There could be a hedging mismatch as the ISDA protocol for the replacement of SOR/LIBOR may not be in alignment with your loan. We will be reaching out to you to assist in the transition, including, where not provided for in your current contract, updated terms and conditions. You are encouraged to review these updated terms and conditions and seek any clarification you need from our Bank representative or your Relationship Manager.
You need to consult your tax adviser to advise you on the implications of the change in the benchmark once the Steering Committee Sub-group that was formed to provide guidance on accounting and tax-related issues, including hedge accounting, have published their guidance in due course.
If you wish to take up a new loan that references SOR/LIBOR, you should review the proposed new loan contract for terms that set out, or permit a switch or fallback to an alternative rate from SOR/LIBOR.
If you are keen to take up a new loan pegged to SORA, kindly contact your assigned Relationship Manager.
There are a few ways SORA could be used to calculate interest payments for corporate loans.
In other markets such as the US and the UK, banks have used the RFR rates calculated based on a compounded or simple average of the alternative overnight interest rate benchmark. Further update will be provided once the Singapore Steering Committee for SOR Transition to SORA (SC-STS) have issued their guidance on the matter.
The expected discontinuation of SOR only affects contracts that reference SOR, e.g. SOR floating rate loans. RHB will continue to offer other types of loans that fit customer needs, including fixed rate loans.
Reference:
SORA - Singapore Overnight Rate Average
SOR – Singapore Swap Offer Rate
LIBOR – London Inter-Bank Offered Rate
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