| LIBOR Based Loan Product |
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| CURRENCIES |
Euros, US dollars or Japanese Yen |
| LENDING RATE |
All LIBOR - based loans will initially have a floating rate until borrower requests for a fixed rate. The lending rate will consist of a base rate plus a fixed spread.
Cost Base Rate: 6-month London Interbank offered rate (LIBOR) for the US dollar and Japanese Yen and 6-month euro interbank offered rate (EURIBOR) for the euro. At any time during the life of the loan, the borrower may request ADB to implement a series of interest rate fixing either by period or by amount.
Fixed Spread: To be determined on a case to case basis based on assessment of credit and project risks and set approximately one month prior to loan signing.
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| COMMITMENT FEE |
0.5-0.75% per annum on progressive amount of undisbursed loan balance. |
| FRONT-END FEE |
1.0-1.5% flat of the loan amount |
| MATURITY |
As may be determined based on project needs and could comprise of a grace period and a repayment period with final maturity. |
| LOAN CONVERSION OPTIONS |
Following conversion options would be available subject to ADB conversion procedures as may be applicable at the time of conversion.
- Currency Conversion:
Undisbursed Amounts: The whole or part of the undisbursed balance of the loan may be converted into the three offered currencies.
Disbursed Amounts: The whole or part of the disbursed balance may be converted into the three offered currencies for the whole or part of the loan's residual life. Maximum maturity will depend on market conditions, currently 10 years. Conversions will be executed at the then prevailing market rates.
Interest Rate Conversion: The floating lending rate on the whole or part of the disbursed balance may be converted into a fixed-rate or vice versa for whole or part of the loan's residual maturity. Conversions will be executed at the prevailing market rates. Borrower may exercise these options any time during the life of the loan subject to a minimum amount of the higher of $ 3 million or 10% of the loan amount. In the case of floating-to-fixed rate conversion maximum maturity is 10 years, although longer maturities may be available on a case by case basis.
Interest Rate Caps and Collars: A cap or collar on the floating lending rate may be purchased for up to the entire disbursed amount, for the whole or part of the residual maturity.
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| TRANSACTION FEES |
Currency Conversion: 0.125% of the transacted amount for the disbursed loan amounts and 0.0625% of the transacted amount for the undisbursed loan amounts.
Interest Rate Conversion: No fee for first series of conversion from floating rate to a fixed rate for up to full amount and maturity of the loan. 0.0625% of the transacted amount on the subsequent interest rate swaps.
Interest Rate Caps and Collars: 0.0625% of the transacted amount.
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| PREPAYMENT |
- All or part of the disbursed and outstanding loans may be prepaid. Floating rate loans could be prepaid on an interest payment due date without a prepayment premium. Prepayment of floating rate loans on a date other than the interest payment due date will attract payment of a premium based on the difference, if any, between the rate at which the proceeds from the prepayment could be reinvested and ADB's funding cost for the prepaid amount. Prepayment of fixed rate loans or floating rate loans that involve conversion and a corresponding hedge requiring termination will attract payment of hedge unwinding costs, if any.
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| CANCELLATION |
Borrower may cancel all or a part of the undisbursed balance at any time. |
| REPAYMENT |
- Equal principal or annuity repayments.
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| LENDING RATE RESET / PAYMENT DATES |
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