WASHINGTON, DC April 25, 2013 - On 12:01 a.m. Washington D.C. time, April 26, 2013, the fixed spread over LIBOR (or Euribor) will increase by 0.10% for new IBRD Flexible Loans (IFLs) with an average repayment maturity of 15 years or less at commitment (i.e., at Board approval).(1) The fixed spread for new loans with an average repayment maturity greater than 15 years will remain unchanged.
The new fixed spreads shown in the table below apply to all loans signed on or after April 27, 2013, local time at the place of signing.
For IBRD Flexible Loans with a Fixed Spread Signed on or after April 27, 2013
Average Repayment Maturity* (years)
Up to 12*
Market Risk Premium
Projected Funding Cost
USD Lending Rate
Change from Previous Pricing
EUR Lending Rate**
JPY Lending Rate**
GBP Lending Rate**
The increase in the fixed spreads is the result of an increase in the World Bank’s projected funding cost, a technical component of fixed spread pricing, which World Bank management reviews at least quarterly to ensure that it reflects evolving, underlying market conditions.* As measured by average repayment maturity of the loan at commitment (1).
** A basis swap adjustment of -0.05% is applicable to EUR fixed spread and -0.15% is applicable to the JPY fixed spread.
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 IBRD Flexible Loans with a variable spread.
(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.