Lending Rates for IBRD Flexible Loans (1)
For Loans Approved After June 30, 2010 (2)

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.

2. Lending rates for loans approved after June 30, 2010, including disbursements of IBRD loans with a Deferred Drawdown Option (DDO) after this date, 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.

3. The variable spread is recalculated every January 1 and July 1.

4. 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.

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 standy-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.