Lending Policies and Rates
Lending Policies
ADB's Classification and Graduation Policy determines the eligibility of developing member countries (DMCs) to borrow based on two main criteria, (i) per capita income and (ii) creditworthiness. DMCs are classified into:
- Group A (Concessional assistance-only): those in need of greatest concessionality and eligible for Asian Development Fund (ADF) grants
- Group B (OCR blend): those that need some concessionality, and
- Group C (Regular OCR only): those in need of least concessionality.
DMCs within these groups are further differentiated to determine the mix of funds and lending terms they can access, based on ADB’s (i) concessional assistance policy and (ii) policy on diversified financing terms (effective 2021).
Classification of DMCs in 2021
Classification of DMCs in 2021
Concessional Assistance Countries
| Group A: Concessional Assistance-only | OCR Blend | |||
|---|---|---|---|---|
| ADF-eligible | COL-only Gapa | |||
| ADF-only (100% grant) | ADF Blend (50% grant) | COL-only (0% grant) | ||
| Afghanistan* ƒ Federated States of Micronesia ƒσ Kiribati* ƒσ Maldives σ Marshall Islands ƒσ Nauru ƒσ Samoa σ Tajikistan Tonga σ Tuvalu* ƒσ |
Kyrgyz Republic Solomon Islands* ƒσ Vanuatu σ |
Nepal* |
Bhutan* |
Bangladesh* Mongolia Pakistan Palau σ Papua New Guinea ƒσ Timor-Leste* ƒσ Uzbekistan |
Regular OCR only Countriesb
| C0 SIDS below the IBRD income cutoff and new group C |
C1 SIDS above the IBRD income cutoff and LMICs |
C2 UMICs below the IBRD income cutoff |
C3 UMICs above the IBRD income cutoff |
C4 High-income countries |
|---|---|---|---|---|
| Fiji σ Sri Lanka Viet Nam |
Cook Islands σ Georgiac Indiad Indonesiac Philippines |
Armenia Azerbaijan Thailande Turkmenistan |
Kazakhstan Malaysia People’s Republic of China |
* = least developed, ƒ = fragile and conflict affected situation, σ = small island developing states, ADF = Asian Development Fund, COL = concessional OCR lending, IBRD = International Bank for Reconstruction and Development, Lao PDR = Lao People’s Democratic Republic, LMICs = lower middle-income countries, OCR = ordinary capital resources, SIDS = small island developing states; UMICs = upper middle-income countries.
a COL-only gap countries, as designated by the International Development Association (IDA), ineligible for ADF grants under the ADB’s concessional assistance policy.
b Differentiated terms take effect beginning 2021.
c UMICs for no more than 2 consecutive years.
d Group B with no access to concessional assistance.
e Above the IBRD income cutoff for no more than 2 consecutive years.
Developing members: Afghanistan; Armenia; Azerbaijan; Bangladesh; Bhutan; Brunei Darussalam; Cambodia; People’s Republic of China; Cook Islands; Georgia; India; Indonesia; Fiji; Hong Kong, China; Kazakhstan; Kiribati; Republic of Korea; Kyrgyz Republic; Lao People’s Democratic Republic; Malaysia; Maldives; Marshall Islands; Federated States of Micronesia; Mongolia; Myanmar; Nauru; Nepal; Niue; Pakistan; Palau; Papua New Guinea; Philippines; Samoa; Singapore; Solomon Islands; Sri Lanka; Taipei,China; Tajikistan; Thailand; Timor-Leste; Tonga; Turkmenistan; Tuvalu; Uzbekistan; Vanuatu; Viet Nam.
By making any designation of or reference to a particular territory or geographical area, or by using the term "country" in the website, ADB does not intend to make any judgment as to the legal or other status of any territory or area. Boundaries, colors, denominations or any other information shown on maps do not imply, on the part of ADB, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.
Terms and conditions of ADB's concessional loans
| Maturity | Grace Period | Interest | Other Features | |
|---|---|---|---|---|
| Group A (CA-only): Project Loans | 32 yrs | 8 yrs | 1% during the grace period 1.5% during the amortization period |
Equal amortization; No commitment fee |
| Group A (CA-only): Policy-based Loans | 24 yrs | 8 yrs | 1% during the grace period 1.5% during the amortization period |
Equal amortization; No commitment fee |
| Group B (OCR blend) | 25 yrs | 5 yrs | 2% interest per year | Equal amortization; No commitment fee |
| Emergency Assistance Loans | 40 yrs | 10 yrs | 1% interest per year | Principal repayment at 2% per year for the first 10 years after the grace period and 4% per year thereafter; No commitment fee |
ADB Loan Charges for Regular OCR LIBOR-based Loans (LBL)
| Item | (in basis points) | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| A. Interest Spread | |||||||||||||||||||||||||||||||
| 1. Effective Contractual Spread | 50 | ||||||||||||||||||||||||||||||
| 2. (Rebate) / Surcharge on Funding Cost Margin* | USD: 1 JPY: -38 EUR: 2 |
||||||||||||||||||||||||||||||
| 3. Maturity Premium |
|
||||||||||||||||||||||||||||||
| 4. Net Spread Over LIBOR (1+2+3)* | USD: 51 to 126 JPY: 12 to 87 EUR: 52 to 127 |
||||||||||||||||||||||||||||||
| B. Commitment Charge (based on the undisbursed balance of the loan) |
15 |
* Determined semi-annually. This margin is applicable to outstanding OCR LIBOR-based sovereign loans from 1 July to 31 December 2021.
Notes: LBLs have a maximum average maturity limit of 19 years. C0 refers to groups receiving zero maturity premium which include small island developing states below the IBRD income cutoff and new regular ordinary capital resources-only members in transition.
Average loan maturity is the average number of years to repay, weighted by repayment amounts. For example, a 20-year loan with 2 equal repayments in years 10 and 20 will have an average maturity of 15 years (10 x 50% + 20 x 50%).