Catalog

	Table of Contents
p. 33 of 46 BACK | NEXT Section 1: Introduction Section 2: Procedures for Exercising Loan Conversion Options Section 3: Limitations, Restrictions and Establishment of Imprest Account Section 4: Basis for Executing Conversion Transactions A. Certain Definitions Relating to Conversion Transactions B. Conversion Dates C. Failure to Effect Conversion During Execution Period D. Types of Conversion Transactions E. Market Transactions F. Currency Conversion of Unwithdrawn Amounts G. Conversion of Withdrawn Amounts H. Partial Maturity Conversion of Withdrawn Amounts I. Interest Rate Cap or Collar J. Conditional Requests K. Notification of Conversion Transactions L. Interest Payments on Conversion Date Section 5: Specified Rate Fixing (SRF) Section 6: Transaction Fees Section 7: Rounding Convention Used in Conversions

Guidelines for Conversion of Loan Terms for ADB LIBOR-Based Loan Product : Section 4: Basis for Executing Conversion Transactions

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J. Conditional Requests

4.32 The Borrower may submit a Request with certain conditions relating to the terms of the Conversion requested (Conditional Request). The Borrower may specify the maximum fixed interest rate or spread over LIBOR it is willing to pay under an Interest Rate Conversion or Currency Conversion. In the case of a Currency Conversion, the conversion of the principal amount of the Loan will be effected at the then prevailing market exchange rate.

4.33 If the Borrower is requesting an Interest Rate Cap or Interest Rate Collar, it may specify the maximum premium to be paid on the Interest Rate Cap or Interest Rate Collar. If the Borrower is requesting for a Zero-Cost Collar, it may specify the maximum strike rate.

4.34 If ADB is unable during the Execution Period to execute the Conversion on the conditional terms set by the Borrower, the Conditional Request will expire, and ADB will promptly notify the Borrower thereof.

4.35 The minimum amount of a Loan which may be covered by a Conditional Request is $25 million equivalent.

4.36 Given the volatility of interest and exchange rates, ADB can give no assurance that it will be able to actually obtain the rate specified in the Conditional Request, even if such a rate were to prevail at any given point during the Execution Period.

Back I. Interest Rate Cap or Collar	Next K. Notification of Conversion Transactions