WASHINGTON, DC July 26, 2017 - As of 12:01 a.m. July 27, 2017, Washington D.C. time the fixed spread over LIBOR (or EURIBOR) will decrease for new IBRD Flexible Loans (IFLs) for all maturities and all currencies. The fixed spreads shown in the table below will apply to all fixed spread loans signed on or after July 28, 2017, local time at the place of signing.
For IFL Fixed Spread Loans Signed On or After Nov 5, 2016 | ||||||
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 | - | +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% | +0.20% | +0.20% | +0.30% | +0.35% | +0.35% |
USD Lending Rate | LIBOR +0.70% | LIBOR +0.90% | LIBOR +1.00% | LIBOR +1.20% | LIBOR +1.40% | LIBOR +1.50% |
Change from Previous Pricing | -0.05% | -0.10% | -0.10% | -0.10% | -0.15% | -0.15% |
EUR Lending Rate** | Euribor +0.55% | Euribor +0.75% | Euribor +0.85% | Euribor +1.05% | Euribor +1.25% | Euribor +1.35% |
JPY Lending Rate** | LIBOR +0.35% | LIBOR +0.55% | LIBOR +0.65% | LIBOR +0.85% | LIBOR +1.05% | LIBOR +1.15% |
GBP Lending Rate** | LIBOR +0.65% | LIBOR +0.85% | LIBOR +0.95% | LIBOR +1.15% | LIBOR +1.35% | LIBOR +1.45% |
* As measured by average repayment maturity of the loan at commitment.
** A basis swap adjustment of -0.15% is applicable to EUR fixed spread, -0.35% is applicable to the JPY fixed spread, and -0.05% is applicable to GBP fixed spread.
The decrease in the fixed spread is the result of a decrease 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.
