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Increase in Fixed Spread for IBRD Flexible Loans
Effective 12:01 a.m. April 22, 2014, Washington D.C. time

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Lending Rates

IBRD Flexible Loan

 

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
12 to 15*
Greater than
15 to 18*
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. See announcement here: Changes in IBRD Loan Terms

Up-to-date lending rates are available on the World Bank Treasury website: IBRD Lending Rates and Loan Charges

Please contact Miguel Navarro-Martin for more information.