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Changes in IBRD Loan Terms

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IBRD Lending Rates

 

On February 11, 2014, the Board of Executive Directors of the World Bank approved the following changes to terms for IBRD loans and guarantees effective July 1, 2014:

  • Commitment fee: A 25-basis point or 0.25% commitment fee will be charged on undisbursed balances for all loans including the Special Development Policy Loan with the following exceptions:

    - The fee will not apply to the Development Policy Loan (DPL) with a Deferred Drawdown Option (DDO) or the Catastrophe Deferred Drawdown Option (Cat DDO).

    - The commitment fee will not apply to loans that meet both the following conditions: (i) the Invitation to Negotiate is issued on or before June 30, 2014; and (ii) the Executive Directors approve the loan on or before September 30, 2014.

  • New maturity structure and pricing:

    - The maximum maturity of the standard IBRD Flexible loan has been extended from 30 to 35 years final maturity and from 18 to 20 years average maturity.

    - The new maturity structure will include six maturity buckets with the maturity premium increasing in 10 bp increments for loans with average maturities greater than 8 years.

    Maturity Premium Schedule:

    Average Maturity
    8 years
    and below
    > 8
    and up to
    10 years
    > 10
    and up to
    12 years
    > 12
    and up to
    15 years
    > 15
    and up to
    18 years
    > 18
    and up to
    20 years
    Maturity Premium
    0 bp
    10 bp
    20 bp
    30 bp
    40 bp
    50 bp

    Application:
    - The new pricing and maturity structure applies to standard investment and development policy loans, including those with Deferred Drawdown Options (and guarantees on a loan equivalent basis).
    - The Special Development Policy Loans remain governed by shorter maturity limits (a grace period of 3 to 5 years and final maturity of 5-10 years).
    - The new maturity structure will not apply to loans that meet both the following conditions: (i) the Invitation to Negotiate is issued on or before June 30, 2014; and (ii) the Executive Directors approve the loan on or before September 30, 2014.

These measures will strengthen IBRD’s financial capacity and expand the exposure room available to countries.

Click for up-to-date pricing.
For more information, please contact mnavarromartin@worldbank.org.