WASHINGTON, DC April 21, 2014 - As of 12:01 a.m. Washington D.C. time, April 22, 2014, the fixed spread over LIBOR (or Euribor) will increase by 5 basis points (0.05%) for new IBRD Flexible Loans (IFLs) for all maturities.
The new fixed spreads shown in the table below apply to all loans signed on or after April 23, 2014, local time at the place of signing.
For IBRD Flexible Loans with a Fixed Spread Signed on or after April 23, 2014 | |||
Average Repayment Maturity* (years) | Up to 12* | Greater than | Greater than |
Contractual Spread | +0.50% | +0.50% | +0.50% |
Maturity Premium | N/A | +0.10% | +0.20% |
Market Risk Premium | +0.10% | +0.10% | +0.15% |
Projected Funding Cost | +0.05% | +0.15% | +0.20% |
USD Lending Rate | LIBOR +0.65% | LIBOR +0.85% | LIBOR +1.05% |
Change from Previous Pricing | +0.05% | +0.05% | +0.05% |
EUR Lending Rate** | Euribor +0.60% | Euribor +0.80% | Euribor +1.00% |
JPY Lending Rate** | LIBOR +0.50% | LIBOR +0.70% | LIBOR +0.90% |
GBP Lending Rate** | LIBOR +0.65% | LIBOR +0.85% | LIBOR +1.05% |
* As measured by average repayment maturity of the loan at commitment.
** A basis swap adjustment of -0.05% is applicable to EUR fixed spread and -0.15% is applicable to the JPY fixed spread.
The increase in the fixed spread is the result of an increase in IBRD’s projected funding cost, which Bank management reviews at least quarterly to ensure that it reflects evolving, underlying market conditions.
The contractual lending spread and maturity premiums, set by the Board, remain unchanged. This change does not affect the pricing of IFLs with a variable spread.
Please note that the Board approved a series of changes in loan terms on February 11, 2014, which will be effective from July 1, 2014.
Up-to-date lending rates are available on the World Bank Treasury website.
Please contact Miguel Navarro-Martin for more information.
As of 12:01 a.m. Washington D.C. time, April 22, 2014, the fixed spread over LIBOR (or Euribor) will increase by 5 basis points (0.05%) for new IBRD Flexible Loans (IFLs) for all maturities.
The new fixed spreads shown in the table below apply to all loans signed on or after April 23, 2014, local time at the place of signing.
