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IBRD and IDA Guarantee Pricing

 


 

The pricing of IBRD and IDA guarantees includes several fees, and is determined based on the concept of loan equivalency with IBRD loans and IDA credits, respictively. The following table presents IBRD and IDA guarantee pricing as of July 1, 2017

Charge
Fee Type
IBRD Guarantees and IDA Guarantees on Non-concessional Terms(1)
IDA Guarantees on Concessional Terms
Private Projects
Public Projects (Project or Policy Based)
Private Projects
Public Projects (Project or Policy Based)
Upfront Charges (one-time fees)
Front-End
25 bps of guarantee amount
N/A
Initiation

Greater of 15 bps of  guarantee amount or USD 100,000

N/A

Greater of 15 bps of  guarantee amount or USD 100,000

N/A

Processing (2)

Up to 50 bps of guarantee amount
N/A
Up to 50 bps of guarantee amount
N/A
Recurring Charges
Standby (3)
25 bps
0 bps
Guarantee (4)
50 (+ premium as applicable)(5)
75 bps

Note: This table includes pricing elements - initiation and precessing fees - which are determiuned by Management. The information in this table is intended to provide readers with a comprehensive picture of all fees applicable to IBRD and IDA Guarantees.

1.Includes IBRD Enclave Guarantees for IDA countries. Excludes the surcharge on excess exposure (see Annex 2).
2. Determined on a case by case basis. In exceptional cases, projects can be charged over 50 bps of the guarantee amount.
3.Set at the same level as the commitment charge on IBRD loans and IDA credits, espectively.
4. The guarantee fee is charged on Bank’s financial exposure under the guarantee, i.e. the present value of the guarantee (which is typically equal to outstanding guarantee amount during a callable period).

5. Guarantee maturity calculations are determined based on the type and structure of a guarantee. For IBRD, the maximum final maturity is 35 years, and the fees include an annual premium based on average maturities as follows:

a) 0 bps for below 8 years of average maturity;
b) 10 bps for 8−10 years of average maturity;
c) 20 bps for 10−12 years of average maturities;
d) 30 bps for 12−15 years of average maturity;
e) 40 bps for 15−18 years of average maturity; and
f) 50 bps for 18−20 years of average maturities.

6. In certain cases, IBRD enclave guarantees for IDA countries may have higher pricing than the above IBRD prices.

For additional information, please contact us at FAB@worldbank.org.