The reduction in tenors of the JBA TIBOR

February 18, 2015

Ippan Shadan Hojin JBA TIBOR Administration

As we announced on July 4, 2014 in "Notes on referencing the JBA TIBOR in Association with the Change in JBA TIBOR Calculation/Publication Entity", we will reduce the number of tenors for which the JBA TIBOR rates are published, from the current thirteen tenors to six tenors from April 1, 2015.

As suggested in the Notes, when entering into a new contract referencing the JBA TIBOR, certain measures need to be taken; for example, by just not referencing the 'to be discontinued' tenors or; setting out an alternative arrangement in preparation for such discontinuation.

Continuing tenors

1 week, 1 month, 2 month, 3 month, 6 month, and 12 month (6 tenors in total)

Discontinued tenors

4 month, 5 month, 7 month, 8 month, 9 month, 10 month and 11 month (7 tenors in total)

If a contract referencing the discontinued tenor does not stipulate alternative measures/arrangements, the concerned parties may, for example, agree upon the following arrangements in advance. Please note though, the detail of these arrangements should be considered and agreed by the concerned parties, taking into account the nature of the contract and are not limited to those described below.

(i) Rates reasonably determined as offered rates of JPY loan transactions in the Tokyo interbank market with a duration equivalent to the tenors to be reduced will be applied.

(ii) Rates calculated by linear interpolation using rates corresponding to the shorter and the longer of tenors closest to the discontinued tenor will be applied.


The JBA TIBOR Administration ("JBATA") commenced the "JBA TIBOR (Tokyo Interbank Offered Rate)" calculation and publication operations on April 1, 2014 transferred from the Japanese Bankers Association ("JBA") on the same day.