The Future of IBORs

Interest rate benchmarks including, among others, the London Interbank Offered Rate (LIBOR), the Euro Interbank Offered Rate (EURIBOR), the Euro Overnight Index Average (EONIA) and certain other Interbank Offered Rates (IBORs) are being overhauled. It is expected that any products that reference an IBOR as an interest rate benchmark will be transitioned to a risk free rate (RFR). Clients should be aware of the potential impact these reforms will have on products they currently have or will obtain in the future.

MUFG will contact clients directly to outline the steps we are taking to ensure the transition to any RFR runs smoothly, and to confirm any impact that may be felt. If you require further information or have queries relating to IBOR discontinuation, please contact


The European Money Markets Institute (EMMI) has announced that EONIA will be discontinued as an interest rate benchmark from 3 January 2022. Until 31 December 2021, EONIA may still be used in financial agreements, however, you should be aware the determination methodology underlying the calculation of EONIA will be revised and the time of its publication will change. From 2 October 2019, EONIA will be calculated as the Euro Short-Term Rate (€STR) plus a fixed spread of 8.5bps, and will be published at approximately 09:15 Central European Time on each TARGET2 business day. EONIA will be calculated under the recalibrated methodology EMMI until it is permanently discontinued on 3 January 2022.

Immediate Impact on the changes of EONIA

All references to EONIA in your financial agreements with MUFG will continue to reference EONIA as amended under the recalibrated methodology with effect from 2 October 2019. This means that any calculations in your financial agreements that reference EONIA will automatically be administered on the basis of the EMMI revisions to EONIA that will take effect from 2 October 2019. EONIA will continue to be published under the same identification codes, i.e. Reuters Instrument Code or Bloomberg ticker.

Publication time

EONIA is currently published on the day of trading (T), at 19:00 CET. From 2 October 2019, EONIA publication will change to TARGET2 business day (T+1) at approximately 09:15 CET to reflect the trading activity of the previous TARGET2 business day.

Accordingly, the change in publication time may result in a shorter period for the settlement of any relevant amounts payable under your financial agreements. For example, where you have agreed with MUFG that any amounts under your financial agreements are settled on the last day of a relevant month, it may be that in order to continue under this arrangement, EONIA is applied on a T+0 basis using the rate that is published on the previous day.

You should note that on 1 October 2019 no EONIA rate will be published at 19:00 CET and the EONIA rate that is to be published on 2 October 2019 will reflect the trading activity of 1 October 2019.

What happens when EONIA is discontinued?

After 31 December 2021 it will not be possible to use EONIA as an interest rate benchmark. Clients may need to replace EONIA with an alternative benchmark for any financial agreements that references EONIA and continues after 3 January 2022. The 'Working Group on Euro risk free rates' has recommended €STR as the replacement benchmark for EONIA. We are currently monitoring this recommendation for adoption and will assess its full implication on any financial agreements before taking any definitive steps, and contact clients in due course to confirm our approach.

More information

For further background information, the following websites contain useful information: