Information On Flexible Loan Product and JPY Lending Rates - 27 Jan 2023
Information On Flexible Loan Product and JPY Lending Rates - 27 Jan 2023
Information On Flexible Loan Product and JPY Lending Rates - 27 Jan 2023
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
FLP Main Features – Sovereign Borrowers
• Interest Rate Conversion • USD, JPY, Euro
• Other currencies in which ADB can efficiently intermediate
• Currency Conversion
• Commitment- • Annuity
FLP • Effective
Contractual
other currencies
0.50% for loans negotiated
on or after 1 January 2014
linked • Straight- Spread
Line
• Custom- • Maturity Sovereign and sovereign-
tailored Premium guaranteed borrowers (for
• Bullet loans approved on or after
1 Jan 2021)
• Disbursement- • Straight-
linked Line
• (Rebates) or (US Dollar 0.19%
Surcharges on for 1 Jan – 30 Jun 2023
Funding Cost
Margin
Eliminated for loans negotiated
FLP= Flexible Loan Product on or after 1 Oct 2007
C0 B and C1 C2 C3 C4
Maturity Premium ≤ 9 years NIL NIL NIL NIL NIL
Fixed for the life of the > 9 years and up to 13 years NIL NIL 0.10% 0.20% 0.40%
(for loans approved loan (Average Loan >13 years and up to 16 years NIL 0.10% 0.20% 0.30% 0.50%
on or after 1 Jan Maturity)
> 16 years and up to 19 years NIL 0.20% 0.30% 0.50% 0.75%
2021)
(with limit of 19 years average loan maturity)
Based on undisbursed
B. Commitment Charge 0.15%
balance
C. Front-End Fee Not applicable* - - -
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Example: Lending Rates (USD,JPY & EUR _ Floating Rate) for
Sovereign FLP
(Lending rate for Loan No. XXXX-DMC; Average Loan Maturity = 12.75 years )
Item USD | JPY EUR
Cost Base Rate SOFR compounded over 6- | TONA compounded over 6- 6-month EURIBOR
month interest periods month interest periods
(Adjusted every 6 months)
determined in arrears determined in arrears
Net Lending Rate * 6-month SOFR compounded 6-month TONA compounded 6-month EURIBOR +
in arrear+ 0.69 % in arrears+ 0.17 % 0.52%
* Floor rate of zero will apply if the net lending rate is negative.
**6-month SOFR / TONA compounded in arrear will only be determined after the end of interest period
Note: The net lending rate varies over the life of the fixed rate loan since rebate/surcharge is adjusted every 6 months.
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Normalized USD-INR, EUR-INR & JPY-INR Exchange rates:
Jan 2003- Jan 2023
• Conversion Guidelines
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Interest Rate Conversion
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Example: Lending Rate – FLP
(Indicative lending rate for Loan XXXX-DMC; Average Loan Maturity = 12.75 years)
Item JPY JPY
Cost Base Rate 6-month TONA compounded Fixed Swap Rate
in arrears
Effective Contractual 0.50% 0.50%
Spread (Fixed)
Maturity Premium (Fixed) 0.00% 0.00%
**Floor rate of zero will apply if the net lending rate is negative .
*** 6-month SOFR/TONA compounded in arrear will only be determined at the end of the interest period.
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Conversion Transaction Fees
0.0625%
Currency Conversions
Un-disbursed loan amounts
0.0625%
Disbursed loan amount
Conversion fees are expressed as percentage of the principal amount
involved and it is a one-time fee payable at the time of conversion
0.125%
except for local currency conversions.
Local Currency conversion
For Local currency conversion, an annual fee of 0.02% of the
outstanding principal hedged amount will be charged to the borrower.
0.02% p.a.
https://www.adb.org/what-we-do/public-sector-financing/lending-policies-rates
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Useful Information on ADB’s Website
ADB’s Flexible Loan https://www.adb.org/sites/default/files/
Product (FLP) brochure adb-flexible-loan-product.pdf
INTERNAL. This information is accessible to ADB Management and staff. It may be shared outside ADB with appropriate permission.
Thank you.