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Decrease in Fixed Spread of IBRD Flexible Loans

Washington, D.C. May 5, 2011 - As of 12:01 a.m. Washington, D.C. time, May 5, 2011, the fixed spread over LIBOR for IBRD Flexible Loans (IFL) with average repayment maturities greater than 12 years will decrease due to a reduction in projected funding costs for these loans. The specific decrease will vary according to the average repayment maturity of the new loan at commitment (i.e., at World Bank Board approval). The pricing for loans with average repayment maturities of 12 years or less will remain unchanged. (1) 

Euro-denominated loans with fixed spread will continue to have the same spreads as US dollar loans. The fixed spreads for yen-denominated loans will remain at 0.10% lower than the corresponding US dollar fixed spread, regardless of average repayment maturity.

The new fixed spreads shown in the table below apply to all loans signed on or after May 6, 2011, local time at the place of signing.

For IBRD Flexible Loans with a Fixed Spread Signed on or after May 6, 2011

Average Repayment Maturity* (years)

Up 12

Greater than 
12 to 15

Greater than 
15 to 18

Contractual Spread




Maturity Premium (2)




Market Risk Premium




Projected Funding Cost




USD Lending Rate

LIBOR +0.60%

LIBOR +0.80%

LIBOR +1.05%

EUR Lending Rate

Euribor +0.60%

Euribor +0.80%

Euribor +1.05%

JPY Lending Rate**

LIBOR +0.50%

LIBOR +0.70%

LIBOR +0.95%

Change from Previous Pricing




The contractual lending spread and maturity premiums, set by the World Bank Board of Executive Directors, remain unchanged. This change also does not affect the pricing of IFLs with a variable spread.* As measured by average repayment maturity of the loan at commitment (1).
**A basis swap adjustment of -0.10% is applicable to the JPY fixed spread.

Borrowers with IFLs that have been negotiated, but not yet signed, will continue to have the option, without need for further Board approval, to switch from fixed to variable spread or vice versa, or to change the average repayment maturity of a fixed spread loan. 

For more information, please contact us at

1. For existing variable spread loans that are later converted to a fixed spread, the fixed spread applied will be based on the remaining average repayment maturity of the loan on the fixing or conversion date.
2. Maturity premiums apply to IBRD loans approved after June 30, 2010.