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Decrease in Fixed Spread of IBRD Flexible Loans


As of 12:01 a.m. Washington, D.C. time, May 5, 2011, the fixed spread over LIBOR for IBRD Flexible Loans (IFL) with average repayment maturities greater than 12 years will decrease due to a reduction in projected funding costs for these loans. The specific decrease will vary according to the average repayment maturity of the new loan at commitment (i.e., at World Bank Board approval). The pricing for loans with average repayment maturities of 12 years or less will remain unchanged. (1) 

Euro-denominated loans with fixed spread will continue to have the same spreads as US dollar loans. The fixed spreads for yen-denominated loans will remain at 0.10% lower than the corresponding US dollar fixed spread, regardless of average repayment maturity.

The new fixed spreads shown in the table below apply to all loans signed on or after May 6, 2011, local time at the place of signing.

  For IBRD Flexible Loans with a Fixed Spread
Signed on or after May 6, 2011

Average Repayment Maturity* (years)

Up 12
Greater than
12 to 15
Greater than
15 to 18
Contractual Spread
Maturity Premium (2)
Market Risk Premium
Projected Funding Cost
USD Lending Rate
LIBOR +0.60%
LIBOR +0.80%
LIBOR +1.05%
EUR Lending Rate
Euribor +0.60%
Euribor +0.80%
Euribor +1.05%
JPY Lending Rate**
LIBOR +0.50%
LIBOR +0.70%
LIBOR +0.95%
Change from Previous Pricing

* As measured by average repayment maturity of the loan at commitment (1).
**A basis swap adjustment of -0.10% 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 IFLs with a variable spread.

Borrowers with IFLs that have been negotiated, but not yet signed, will continue to have the option, without need for further Board approval, to switch from fixed to variable spread or vice versa, or to change the average repayment maturity of a fixed spread loan.

Click here for more information on IBRD lending rates. For more information, please contact us at FAB@worldbank.org.

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.
2. Maturity premiums apply to IBRD loans approved after June 30, 2010.