An agreement for a World Bank borrowing of Yen 55 billion (about US$227.4 million equivalent at current exchange rates) was signed today in Tokyo by The World Bank and a consortium of Japanese financial institutions.
The syndicated loan, with a final maturity of 12 years and an average life of 10.5 years, bears interest at the rate of 8% (0.1% above the long term prime lending rate) per annum payable semi-annually. The spread over LTPR for 12-year loans to The World Bank was lowered for the first time, from 0.2% p.a. to 0.1% p.a. The management fee was also reduced from 0.5% to 3/8%.
The syndicated loan is extended to The World Bank by a consortium of Japanese banks and insurance companies with the Industrial Bank of Japan, Limited, the Long-Term Credit Bank, Limited, the Bank of Tokyo, Limited, the Nipponcredit Bank, Limited, and Nippon Life Insurance Company as joint lead-managers. The Dai-ichi Mutual Life Insurance Company, Asahi Mutual Life Insurance Company, and the Tokyo Marine and Fire Insurance Company, Limited are co-managers of the transaction. The Bank of Tokyo, Limited is also the agent for the loan.
Including this borrowing, The World Bank has concluded eleven loans aggregating Yen 560 billion (about US$2.3 billion equivalent) with the Japanese banks and insurance companies included in this group of lenders.