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IDA Credit Rates and Charges

IDA18 Scale-Up Facility
Product Note:
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IDA Non-concessional Financing Credit Worksheet:
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IDA Terms

(Effective as of January 1, 2018)

Maturity
Grace Period
Principal Repayments
Acceleration Clause

Grants

NA
NA
NA
NA

Small Economy

40
10

2% for years 11-20; 4% for years 21-40

Yes

Regular

38
6
3.125% for years 7-38
Yes

Blend

30
5
3.3% for years 6-25; 6.8% for years 26-30
Yes
Guarantees
NA
NA
NA
NA
Non-concessional Financing (IDA18 Scale-up Facility & Transitional Support)
Up to 35 years maximum maturity; up to 20 years average maturity
Flexible
NA

Notes:                                                                                                              

1. The maturity of all IDA credits approved by the Board through June 30, 1987 is 50 years. The maturity of IDA credits approved by the Board between June 30, 1987 and June 30, 2011 are 35 or 40 years.  The maturity of credits approved between July 1, 2011 and June 30, 2014 are 25 or 40 years.                                                                                                                          

2. IDA credits include an acceleration clause, providing for doubling of principal payments from creditworthy borrowers where per capita income remains above eligibility thresholds. IDA credits on hardened terms (approved during IDA13-IDA15) are exempt from the accelerated repayment provisions.                                                                                                         

3. Blend terms apply to blend countries and IDA countries with GNI per capita above the operational cutoff for more than two consecutive years, known as "gap" countries.  An exception to the GNI per capita operational cutoff for IDA eligibility has been made for some small states and small island economies (i.e. small economy terms) based on their vulnerability.

4. Debt service payment dates are the 1st or 15th day of a month and semi-annually thereafter, as decided by the recipient during credit negotiation.                                      

5. Fixed rates for single-currency credits are calculated and published quarterly. Credits approved in each quarter will be subject to the rates effective for that quarter.

6. To ensure that IDA covers its administrative expenses and to prevent a negative interest charge, IDA applies a floor of 75 bps for the service charge and a floor of 0 bps for the interest charge for all currencies. The service charge is applied as a percentage of the disbursed and outstanding credit balance                                 

7. All IDA concessional credits are subject to a commitment charge, which is currently nil. IDA's Commitment charge is a variable charge set within a range of 0 - 0.5 percent of the undisbursed balance of IDA's credits and grants.  Executive Directors review and approve the level of the commitment charge annually.

8. For guarantees;

  • A standby fee is applied to the undisbursed balance of the guaranteed financing and is analogous to the commitment charge on IDA credits. The standby fee is currently fixed at 0 bps per annum, but may change per changes in commitment charges.
  • A guarantee fee is applied on the disbursed and outstanding amounts of the guaranteed financing, in the same way service charges on IDA credits are applied. The guarantee fee is currently fixed at 75 bps per annum, equal to the fixed level of service charges on IDA credits.
  • In addition to the standby and guarantee fees, IDA guarantees for private sector borrowers are subject to an initiation fee and a processing fee, which are one-time fees paid up-front. The initiation fee is 15 bps of the principal amount or $100,000 (whichever is higher); the processing fee is up to 50 bps of the principal amount. The processing fee is assessed on a case by case basis and can be either waived or increased in exceptional cases.

IDA Fixed Rates for FY18 Q3
(Effective as of January 1, 2018)

 

Currency

 
USD
EUR
JPY
GBP
SDR

Regular for Small Economy - Service
(10-yr grace and 40-yr maturity)

1.34%
0.75%
0.75%
0.75%
0.75%

Regular for IDA Only - Service
(6-yr grace and 38-yr maturity)

1.37%
0.75%
0.75%
0.75%
0.75%
Blend - Service
1.39%
0.75%
0.75%
0.75%
0.75%
Blend - Interest
1.40% 0.62% 0.00% 0.74% 1.25%

Blend - Total

2.79%
1.37%
0.75%
1.49%
2.00%

Basis Adjustments (bps) for Single-Currency Credits
(Effective as of January 1, 2018)

 
USD
EUR
JPY
GBP

Regular for Small Island - Service
(10-yr grace and 40-yr maturity)

59
0
0
0

Regular for IDA Only - Service
(6-yr grace and 38-yr maturity)

62
0
0
0
Blend - Service
64
0
0
0
Blend - Interest
15
-63
-125
-51

Blend - Total

79
-63
-125
-51

The basis adjustment accounts for the differences in notional interest rates between the currencies. For any given single currency-credit with a fixed rate, the basis adjustment plus the standard SDR charge for that credit equals the single currency charge. The basis adjustment is applied to ensure that the present value of total cash flows of the single-currency credit equals the present value of the equivalent SDR credit (Because market swap rates beyond the 10-year maturity for the Chinese yuan are not available, the calculation of the single currency lending rates for Regular and Blend terms credits uses estimated values that are based on available market data). Please note that basis adjustment for IDA service charges cannot be lower than zero since IDA applies a floor of 75 bps for the service charge on single-currency credits for all currencies.

IDA18 Scale-Up Facility and Transitional Support Rates

 

Fixed Spread
(as of July 27, 2017)

Average Maturity (years) (5) 8 years and below
Greater than
8 to 10
Greater than
10 to 12
Greater than
12 to 15
Greater than
15 to 18
Greater than
18 to 20

USD

LIBOR +0.70%
LIBOR +0.90%
LIBOR +1.00%
LIBOR +1.20%
LIBOR +1.40%
LIBOR +1.50%

EUR (6)

EURIBOR +0.55%
EURIBOR +0.75%
EURIBOR +0.85%
EURIBOR +1.05%
EURIBOR +1.25%
EURIBOR +1.35%

JPY

LIBOR +0.35%
LIBOR +0.55%
LIBOR +0.65%
LIBOR +0.85%
LIBOR +1.05%
LIBOR +1.15%

GBP

LIBOR +0.65%
LIBOR +0.85%
LIBOR +0.95%
LIBOR +1.15%
LIBOR +1.35%
LIBOR +1.45%
Front-End Fee (7)
0.25%
Commitment Fee (8)
0.25%


 

Variable Spread
(as of January 1, 2018)

Average Maturity (years) (5) 8 years and below
Greater than
8 to 10
Greater than
10 to 12
Greater than
12 to 15
Greater than
15 to 18
Greater than
18 to 20

USD

LIBOR +0.46%
LIBOR +0.56%
LIBOR +0.66%
LIBOR +0.76%
LIBOR +0.86%
LIBOR +0.96%

EUR (6)

EURIBOR +0.46%
EURIBOR +0.56%
EURIBOR +0.66%
EURIBOR +0.76%
EURIBOR +0.86%
EURIBOR +0.96%

JPY

LIBOR +0.46%
LIBOR +0.56%
LIBOR +0.66%
LIBOR +0.76%
LIBOR +0.86%
LIBOR +0.96%

GBP

LIBOR +0.46%
LIBOR +0.56%
LIBOR +0.66%
LIBOR +0.76%
LIBOR +0.86%
LIBOR +0.96%
Front-End Fee (7)
0.25%
Commitment Fee (8)
0.25%

Notes: The base lending rate for IBRD Flexible Loans in most currencies is currently the 6-Month LIBOR in the relevant currency. Find information on LIBOR rates on the website of the British Bankers' Association. For information about Euribor rates, visit the website of the European Banking Federation.

1. IBRD lending rates include a standard lending spread comprising a contractual spread of 0.50% and, where applicable, an annual maturity premium. The lending rate also includes a charge to cover the bank's cost to fund the loans relative to the base lending rate and a market risk premium (for fixed spreads). DDO disbursements are priced at the prevailing spread over 6-Month LIBOR at the time of drawdown. Effective February 11, 2014, there is a surcharge of 50 basis points per annum on loan balances in excess of $16.5 billion for Brazil, China, Indonesia, and Mexico and in excess of $17.5 billion for India.

 

2. Lending rates for loans approved between June 30, 2010 and June 30, 2014, including disbursements of IBRD loans with a Deferred Drawdown Option (DDO) during this period, and loans for which the Invitation to Negotiate was issued on or before June 30, 2014 and approved by the Executive Directors on or before September 30, 2014, include an annual maturity premium of 0.10% for loans with average repayment maturities of greater than 12 to 15 years, or 0.20% for loans with average repayment maturities of greater than 15 to 18 years. For loans approved after June 30, 2014 (with the exception of those for which the Invitation to Negotiate was issued on or before June 30, 2014 and approved by the Executive Directors on or before September 30, 2014), please refer to the February 11, 2014 news announcement.

 

3. The fixed spread is determined at loan signing and remains constant over the life of the loan. “Fixed Spread” means the Bank's fixed spread for the initial loan currency in effect at 12:01 a.m. Washington, D.C. time, one calendar day prior to the date of the Loan Agreement.

4. As of April 1, 2017, IBRD calculates the average funding spread component of the Variable Spread on a quarterly basis. See announcement here.

5. As measured by average repayment maturity of the loan at commitment (i.e. Board approval). The calculation of the average repayment maturity for DDOs will begin at loan effectiveness for the determination of the applicable maturity premium.

 

6. All new Euro-denominated loans for which the invitation to negotiate was issued on or after July 31, 2010 will have Euribor as the base lending rate.

 

7. Development Policy Loans (DPL) with a Deferred Drawdown Option (DPL DDO) carry a 0.25% front-end fee, plus a stand-by fee of 0.50%. DPLs with a Catastrophe Risk DDO (Cat DDO) carry a 0.50% front-end fee, plus a 0.25% renewal fee.

 

8. In addition to the above, a commitment fee of 0.25% is charged on undisbursed balances and begins accruing
60 days after the Loan Agreement is signed. The Bank does not charge commitment fee for loans that fail to become effective.

 

Transaction fees for IDA18 SUF Conversions

 

Applicable transaction fees for loan conversions are the same as for the IBRD Flexible Loan (IFL). Please see conversion fees here: http://tcmp.worldbank.org/public/bdm/htm/Loan_Conversion_Options.html

IDA17 Scale-Up Facility Financing Floating Rates

FLOATING RATE
w/ Fixed Spread (Effective as of January 1, 2018)
USD
EUR
JPY
GBP

Option 1: 24/5

LIBOR +1.20%
EURIBOR + 1.05%
LIBOR + 0.85%
LIBOR + 1.15%

Option 2: 27/8

LIBOR + 1.40%
EURIBOR + 1.25%
LIBOR + 1.05%
LIBOR + 1.35%
Option 3: 30/9
LIBOR + 1.50%
EURIBOR + 1.35%
LIBOR + 1.15%
LIBOR + 1.45%
FLOATING RATE
w/ Variable Spread (Effective as of January 1, 2018)
USD
EUR
JPY
GBP

Option 1: 24/5

LIBOR + 0.76%
EURIBOR + 0.76%
LIBOR + 0.76%
LIBOR + 0.76%

Option 2: 27/8

LIBOR + 0.86%
EURIBOR + 0.86%
LIBOR + 0.86%
LIBOR + 0.86%
Option 3: 30/9
LIBOR + 0.96%
EURIBOR + 0.96%
LIBOR + 0.96%
LIBOR + 0.96%

Front-end fee: 0.25%, Commitment Fee: 0.25%

IDA17 Scale-up Facility credits are subject to an all-in-rate floor of 75bps. The pricing methodology follows IBRD’s approach of setting the Fixed Spread at signing, and the rates are subject to the IBRD spreads that are prevailing at that time. Scale-up Facility credit fees include a one-time front-end fee of 0.25% and a commitment fee of 0.25%. The front-end fee is charged on the committed amount. The commitment fee is charged on the undisbursed amount of the credit. The commitment fee is payable semi-annually once the credit is effective.

Floating Rates for IDA17 Transitional Support Window
(Effective as of January 1, 2018)

Transitional Support
USD
EUR
JPY
GBP

Reference Market Rate (6-month)

LIBOR
EURIBOR
LIBOR
LIBOR

IBRD Fixed Spread

140 bps
125 bps
105 bps
135 bps

Minus 100 bps

-100 bps
-100 bps
-100 bps
-100 bps

Plus 75 bps Service Charge

+75 bps
+75 bps
+75 bps
+75 bps
Plus Transaction Fee
+1 bps
+1 bps
+1 bps
+1 bps
IDA Fixed Spread
116 bps
101 bps
81 bps
111 bps
TOTAL*
LIBOR+1.16%
EURIBOR+1.01%
LIBOR+0.81%
LIBOR+1.11%

* For the floating rate option, the pricing methodology follows IBRD’s approach of setting the Fixed Spread at signing, and the rates are subject to the IBRD spreads that are prevailing at that time. The Borrower shall pay a transaction fee set at 1 bps per annum. This fee shall be added to the interest rate. A commitment charge of between 0 and 50 bps would also be applied (currently nil). Floating rate credits will be subject to a floor of 0 bps floor on interest rates. In addition, in case of prepayments, IDA will pass on to the floating rate borrower the costs or gains from the swap terminations.

Floating Rates for IDA17 Hard-Term Lending Window
(Effective as of January 1, 2018)

Hard-Term Lending
USD
EUR
JPY
GBP

Reference Market Rate (6-month)

LIBOR
EURIBOR
LIBOR
LIBOR

IBRD Fixed Spread

140 bps
125 bps
105 bps
135 bps

Minus 200 bps

-200 bps
-200 bps
-200 bps
-200 bps

Plus 75 bps Service Charge

+75 bps
+75 bps
+75 bps
+75 bps
Plus Transaction Fee
+1 bps
+1 bps
+1 bps
+1 bps
IDA Fixed Spread
16 bps
1 bps
-19 bps
11 bps
TOTAL*
LIBOR+0.16%
EURIBOR+0.01%
LIBOR-0.19%
LIBOR+0.11%

* For the floating rate option, the pricing methodology follows IBRD’s approach of setting the Fixed Spread at signing, and the rates are subject to the IBRD spreads that are prevailing at that time. The Borrower shall pay a transaction fee set at 1 bps per annum. This fee shall be added to the interest rate. A commitment charge of between 0 and 50 bps would also be applied (currently nil). Floating rate credits will be subject to a floor of 0 bps floor on interest rates. In addition, in case of prepayments, IDA will pass on to the floating rate borrower the costs or gains from the swap terminations.