ADB Lowers Charges on LIBOR-based Loans
MANILA, PHILIPPINES - The Asian Development Bank (ADB) has reduced its loan charges on LIBOR-based loans to sovereign borrowers or borrowers with sovereign guarantees negotiated on or after 1 October 2007.
Under the new loan pricing structure, the effective lending spread has been reduced to 0.20% per annum and ADB has eliminated the annually approved waiver mechanism.
New LIBOR-based loans will carry a small commitment charge of 0.15%, down from 0.75% for program loans and 0.35% for project loans. Additionally, front-end fees have been eliminated. The exact level of ADB’s lending rate can vary because it is determined by the cost of borrowings and LIBOR.
“This demonstrates ADB’s commitment in providing resources for developmental lending at the lowest and most stable funding cost sand on the most reasonable lending terms, while safeguarding ADB’s financial strength,” says ADB Treasurer Mikio Kashiwagi.
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