IBRD Lending Rates and Loan Charges
Lending Rates for IBRD Flexible Loans (1)
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 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.
For additional information about IBRD lending rates and charges, please contact us at FAB@worldbank.org.