WASHINGTON, DC October 5, 2011 - As of 12:01 a.m. October 6, 2015, Washington D.C. time the fixed spread over LIBOR (or EURIBOR) will increase for all new IBRD Flexible Loans (IFLs). The new fixed spreads shown in the table below will apply to all fixed spread loans signed on or after October 7, 2015, local time at the place of signing.
For IFL Fixed Spread Loans Signed On or After October 7, 2015 | ||||||
Average Repayment Maturity* (years) | Less than 8 Years* | Greater than 8 to 10 Years* | Greater than 10 to 12 Years* | Greater than 12 to 15 Years* | Greater than 15 to 18 Years* | Greater than 18 Years* |
Contractual Spread | +0.50% | +0.50% | +0.50% | +0.50% | +0.50% | +0.50% |
Maturity Premium | N/A | +0.10% | +0.20% | +0.30% | +0.40% | +0.50% |
Market Risk Premium | +0.10% | +0.10% | +0.10% | +0.10% | +0.15% | +0.15% |
Projected Funding Cost | +0.10% | +0.15% | +0.15% | +0.20% | +0.25% | +0.25% |
USD Lending Rate | LIBOR +0.70% | LIBOR +0.85% | LIBOR +0.95% | LIBOR +1.10% | LIBOR +1.30% | LIBOR +1.40% |
Change from Previous Pricing | +0.10% | +0.10% | +0.10% | +0.05% | +0.05% | +0.05% |
EUR Lending Rate** | Euribor +0.65% | Euribor +0.80% | Euribor +0.90% | Euribor +1.05% | Euribor +1.25% | Euribor +1.35% |
JPY Lending Rate** | LIBOR +0.55% | LIBOR +0.70% | LIBOR +0.80% | LIBOR +0.95% | LIBOR +1.15% | LIBOR +1.25% |
GBP Lending Rate** | LIBOR +0.70% | LIBOR +0.85% | LIBOR +0.95% | LIBOR +1.10% | LIBOR +1.30% | LIBOR +1.40% |
* 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 current fixed spread for loans denominated in GBP is set at the same rate as the fixed spread for loans denominated in USD.
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.
Please contact Miguel Navarro-Martin for more information.
[1] The basis adjustment refers to the difference between IBRD fixed spread loan pricing in US dollars and other major currencies.
