SIBOR

SIBOR, the Singapore Interbank Offered Rate, was a Singapore dollar term benchmark based on rates contributed by panel banks. All SIBOR tenors have now ceased: the final one-month and three-month settings were published on December 31, 2024, completing Singapore’s transition to the Singapore Overnight Rate Average (SORA).

SIBOR should therefore be described as a discontinued benchmark, not as a current rate available for new mortgages, loans, or derivatives.

Key Takeaways

• SIBOR was a forward-looking term benchmark for unsecured Singapore dollar bank funding.
• Twelve-month SIBOR ended in 2020, six-month SIBOR in 2022, and the remaining one- and three-month tenors at the end of 2024.
• SORA, administered by the Monetary Authority of Singapore, is the transaction-based overnight benchmark at the center of current SGD interest-rate markets.
• SIBOR and SORA differ in tenor, methodology, credit content, and payment timing.
• For a legacy loan, the amendment, conversion notice, or operative contract terms determine the current rate and adjustment spread.

SIBOR Cessation Timeline

The Association of Banks in Singapore lists the last publication dates as:

SIBOR was discontinued from January 1, 2025. Historical values may still appear in old statements, loan documents, databases, and charts, but that does not make SIBOR a live benchmark.

How SIBOR Worked

SIBOR represented the rate at which a contributor bank could borrow Singapore dollars from another bank for a stated term. It was calculated as a trimmed arithmetic mean of contributor-bank rates under the administrator’s methodology.

Its term structure meant that a one- or three-month rate could generally be identified near the beginning of the interest period. Because the borrowing was unsecured and longer than overnight, the rate incorporated bank credit and term liquidity characteristics.

The historical formula is best understood conceptually as:

The methodology’s contributor, trimming, timing, and contingency rules governed the actual fixing. A simple untrimmed average of all bank quotes would not reproduce it.

Why SIBOR Mattered

SIBOR was widely recognized by Singapore borrowers because it appeared in retail mortgage and other loan pricing. It also served as a reference for certain commercial contracts and financial analysis.

A typical floating-rate clause used:

The benchmark reset transferred market-rate changes to the borrower or investor. The margin reflected separate lender, borrower, product, and credit considerations.

Worked Example: Historical SIBOR Loan

Suppose a legacy S$1 million loan reset at three-month SIBOR plus 125 basis points. If the historical contractual fixing was 1.50%, the annualized all-in rate was:

For an illustrative 90-day period on an Actual/365 basis, interest would be:

This example explains an old SIBOR-linked calculation. It is not a current rate quotation. A converted loan may instead reference compounded SORA plus an adjustment spread and margin under its operative terms.

SIBOR Versus SORA

SORA is the volume-weighted average rate of eligible unsecured overnight Singapore dollar interbank transactions brokered in Singapore. MAS publishes the daily rate, and compounded SORA series help users apply overnight observations over longer periods.

Moving from SIBOR to SORA was not a simple ticker replacement. Contracts and systems had to address compounding, observation periods, payment notice timing, and an adjustment spread intended to account for structural differences.

SIBOR Was Not SOR

SIBOR and the Swap Offer Rate (SOR) were separate benchmarks.

• SIBOR was a Singapore dollar term interbank offered rate.
• SOR incorporated foreign-exchange and U.S. dollar interest-rate inputs.
• SOR ceased after June 30, 2023.
• SIBOR’s final settings ceased after December 31, 2024.
• SORA became the central benchmark for Singapore dollar interest-rate products.

Confusing SIBOR and SOR can lead to the wrong cessation date, fallback, and spread adjustment.

Reviewing a Former SIBOR Loan

If an older statement or agreement mentions SIBOR, verify:

1. Original tenor: One-month and three-month SIBOR contracts could have different conversion terms.
2. Transition document: Find the amendment, customer notice, or automatic-conversion provision.
3. Current benchmark: Confirm whether the loan now uses compounded SORA, a fixed rate, or another bank-specific package.
4. Adjustment spread: Separate any transition adjustment from the lender’s contractual margin.
5. Observation method: Identify the compounding period, lookback, lockout, or other convention.
6. Floor and rounding: Check whether the benchmark or all-in rate has a minimum.
7. Effective date: Do not infer the live rate from an old statement that still displays the SIBOR label.

Borrowers should use current documents and contact their lender for account-specific terms. Historical educational descriptions cannot determine an individual loan payment.

Risks and Limitations

• Document risk: A summary page may not reflect amendments or automatic conversion notices.
• Basis risk: SIBOR and SORA do not move identically because their terms and risk content differ.
• Timing risk: A compounded SORA rate becomes known differently from a forward-looking SIBOR fixing.
• Operational risk: Systems must apply the correct daily observations, calendars, spread, and rounding.
• Comparison risk: A SIBOR-era margin cannot be compared directly with a SORA margin without considering the adjustment and full contract economics.

Common Mistakes

• Presenting SIBOR as an active Singapore benchmark.
• Saying SIBOR was directly regulated or published by MAS rather than administered by ABS Benchmarks Administration Co.
• Treating SIBOR as a transaction-based overnight rate.
• Using the same cessation date for every tenor.
• Confusing SIBOR with SOR.
• Assuming SORA is always known at the beginning of an interest period.
• Calculating a current payment from a historical SIBOR value after the loan has converted.

Sources and Further Reading

• Association of Banks in Singapore, benchmark rates and cessation dates
• ABS, SOR and SIBOR transition to SORA
• ABS, Banks successfully complete the transition to SORA
• ABS, SIBOR consumer FAQs

Related Terms

• IBOR: The broader family label to which SIBOR historically belonged.
• Overnight Rate: The one-day rate concept underlying SORA.
• Benchmark Rate: A standardized reference used in financial contracts.
• Floating-Rate Loan: A loan whose payment can reset with a benchmark.
• Basis Point: The unit used for contractual margins and transition spreads.

FAQs

This article provides general financial education, not personalized borrowing, investment, accounting, tax, or legal advice. Use current lender notices, governing documents, and official administrator publications for any live obligation.