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ADB Rebates on Libor-Based Loans

MANILA, PHILIPPINES (8 July 2002) - The Asian Development Bank (ADB) is giving rebates to its developing member countries that were billed for LIBOR-based loans (LBL) between 1 January and 30 June 2002 because ADB's cost of funding was lower than the six-month LIBOR.

For US dollar denominated LBLs, the average funding cost was 0.36 percent below the six-month US LIBOR, so ADB will issue a rebate of 0.36 percent for those loans that were billed with a rate of LIBOR + 0.6 percent during the first six months of this year.

For Japanese yen denominated LBLs, the average funding cost was 0.16 percent below the six-month JPY LIBOR. Thus, a rebate of 0.16 percent will be applied to those loans at LIBOR plus 0.6 percent.

"ADB's high credit rating enabled it to fund its LBLs at a cost lower than the six-month LIBOR, so we are maintaining our policy of passing on the benefits of lower costs to our clients through rebates," says ADB Treasurer Thierry de Longuemar.

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