Sullivan Advises BAFT and ITFA on Amendment Agreements to MPAs
(London and New York) – Global law firm Sullivan has advised international financial services association BAFT (the Bankers Association for Finance & Trade), together with ITFA (the International Trade and Forfaiting Association), through its Market Practice Committee, on key amendments to reflect the cession of LIBOR to the following documents:
- BAFT Master Participation Agreement 2008 English Law
- Form of Amendment Agreement to 2008 English Law MPA
- BAFT Master Participation Agreement 2018 English Law
- Form of Amendment Agreement to 2018 English Law MPA
- BAFT Master Participation Agreement 2010 (New York Law)
- Form of Amendment Agreement to 2010 New York Law MPA
- BAFT Master Participation Agreement 2019 (New York Law)
- Form of Amendment Agreement to 2019 New York Law MPA
The suite of MPAs are industry standard documents used by banks and their counterparties around the globe to facilitate the buying and selling of country and bank trade-related assets. They have been updated as the trade finance industry transitions to alternative risk-free reference term rates (RFRs), following the cessation of LIBOR.
The amendment agreements can be used to make changes to existing MPAs. For those wishing to enter into new agreements reflecting the changes, and for new MPAs in the future, updated versions of the various MPAs are available.
The approach taken is to replace the references to LIBOR by references to relevant central bank rates for those currencies for which LIBOR is currently quoted. The changes only deal with LIBOR replacement and not with any other issues or developments since each MPA was published. The amendment agreements do not amend the rate in any participated transactions and only in the MPA itself. Participated transactions can use a variety of rates, as specified in an Offer.
Geoffrey Wynne, head of Sullivan’s Trade & Export Finance Group, commented: “The MPAs help those active in the trade finance market to keep trade finance flowing internationally, and are vital documents for those negotiating and agreeing the sale and purchase of trade-related assets. Sullivan is delighted to have advised BAFT and ITFA on these essential industry documents, again, involving lawyers from our team in both New York and London, illustrating the strength of our international trade finance team.”
BAFT Members can download the new MPAs documents here.
The Sullivan team was led by Trade & Export Finance partners Geoffrey Wynne in London and Jon ‘Jay’ Jenkins in New York, managing associate Hannah Fearn, and Senior Knowledge Development Lawyer Jacqueline Cook in London, with support from a team drawn from across the firm’s US and London offices.
Sullivan & Worcester (Sullivan) is a leading AmLaw 200 law firm. With over 200 attorneys in Boston, London, New York, Tel Aviv and Washington, DC, they guide organizations that are rewriting the rules. Sullivan’s clients, including Fortune 500 companies and emerging businesses, rely on Sullivan’s strategic vision, comfort with complexity and intense focus on results. As a global law firm, Sullivan’s reach extends beyond the United States. Sullivan has represented clients around the world and has a deep bench for working on a variety of matters and issues affecting clients globally.