PRODUCT NOTEIBRD Flexible Loan with Variable Spread: Pricing BasicsHighlights••••

The lending rate is comprised of a variablereference rate plus a variable spread.
The applicable spread is the one prevailingat loan signing and may be different fromthe spread prevailing at negotiations.
The applicable spread for disbursements ofloans with a Deferred Drawdown Option(DDO) is the spread prevailing on thewithdrawal date.
IBRD loan pricing is subject to annual andperiodic reviews.

Pricing Structure
IBRD pricing is based on a floating reference rate (SOFR for USD,SONIA for GBP, TONA for JPY, and EURIBOR for EUR) for a sixmonth interest rate period plus a variable spread. The
applicable spread will vary according to average repayment
maturity and country groups 1.
In addition to the spread over the reference rate, the Bankcharges a front-end fee and a commitment fee. See overleaf
for sample pricing. Please note that pricing may be different
based on the date of invitation to negotiate and the date ofBoard approval of the loan. For the latest IBRD lending rates,
loan charges, and pricing in currencies other than US dollar,
please visit the World Bank Treasury website:

IFL with a Deferred Drawdown Option

Development Policy Loans (DPLs) with a Deferred Drawdown
Option (DPL DDOs) and DPLs with Catastrophe Deferred
Drawdown Options (Cat DDO) allow the borrower to defer thedisbursement of funds until the financing is needed.
These loans carry the same lending rates as regular IBRD loans.
Loan charges vary according to the type of DDO.
DDO disbursements are priced at the prevailing spread overthe corresponding reference rate for IBRD loans at the time ofwithdrawal based on applicable average repayment maturity(ARM). The calculation of ARM begins at loan effectiveness forthe determination of the maturity premium (if applicable), but
at withdrawal for the remaining components of the spread.

Climate Resilient Debt Clause (CDRC)IBRD Flexible loan covers small states, whose economies aredisproportionately vulnerable, against natural disasters. By
including the CRDC in their loan agreement, eligible borrowers 2can defer their principal and interest payments and other loancharges for up to 2 years in case of predefined disasters. The
CRDC is offered to eligible borrowers at no cost to them.

Pricing Review Process

The World Bank conducts an annual review of loan charges—
the contractual lending spread, maturity premium, front-end
fee, and commitment fee—to ensure that pricing is regularly
updated and aligned with the prevailing needs of the institution
and its shareholders.

http://treasury.worldbank.org/en/about/unit/treasury/ibrdfinancial-products/lending-rates-and-fees

Variable Spread

The variable spread includes a contractual spread, a maturity
premium (where applicable), and a charge to cover the Bank’s
average funding spread relative to SOFR or EURIBOR, wherein
the benefits and risks of changes in IBRD's cost of borrowing
are borne by the borrower. The variable spread is recalculated
every January 1, April 1, July 1, and October 1 based on the costof the underlying funding for these loans.

1Countries are classified into one of four pricing groups: A,B,C, or D. Group A: Blends, small
states, countries in fragile and conflict-affected situations (FCS) and recent IDA graduates.
These countries are exempt from the maturity premium increase regardless of their incomelevels. Group B: Countries below-GDI which do not qualify for an exemption listed in Group A.
Group C: Countries above-GDI, but below high-income country status, and which do not

IBRD Flexible Loan with Variable Spread: Pricing Basics

qualify for an exemption listed in Group A. Group D: Countries with high income status andwhich do not qualify for an exemption listed in Group A.

2IBRD and IDA-eligible Small States, members of Small States Forum and Small Island
Developing States as defined by UN

Updated July 26, 2024Confidential

PRODUCT NOTE
USD Lending Rates and Charges for the IBRD Flexible Loan

IBRD Flexible loan variable spread is the sum of the contractual spread, the maturity premium (based on the country grouping
and the actual funding cost.)

Loan Charges
Front-End Fee

0.25%

Commitment Fee

0.25%

DPL DDO Fees

0.25% Front-End Fee; 0.50% Stand-by Fee

Cat DDO Fees

0.50% Front-End Fee; 0.25% Renewal Fee

CRDC Fee for eligible borrowers who opt in

0.05%

Variable Spread 3 as of July 1, 2024
Reference Rate
Average Repayment
Maturity

Up to 8 Years

SOFR for USD, SONIA for GBP, TONA for JPY, and EURIBOR for EUR(6 months interest rate period)
Greater than 15 toGreater than 8Greater than 10
Greater than 1218 Years
to 10 Years
to 12 Years
to 15 Years

Greater than 18
to 20 Years 4Currency

USD
GBP

EUR

JPY

USD
GBP

EUR

JPY

USD
GBP

EUR

JPY

USD
GBP

EUR

JPY

USD
GBP

EUR

JPY

USD
GBP

EUR

JPY

Average Funding
Spread (in percentage)

0.44

0.01

-0.20

0.44

0.01

-0.20

0.44

0.01

-0.20

0.44

0.01

-0.20

0.44

0.01

-0.20

0.44

0.01

-0.20

0.500.50

0.50

0.50

0.50

0.50

GroupA

00.10

0.20

0.30

0.40

0.50

GroupB

0

0.10

0.25

0.40

0.55

0.70

GroupC

00.10

0.30

0.50

0.70

0.90

GroupD

0.05

0.15

0.40

0.65

0.90

1.15

Contractual Spread

Standard
Maturity
Premium(inpercentage)

Total Spread (in percentage)
Group A

0.94

0.51

0.30

1.04

0.61

0.40

1.14

0.71

0.50

1.24

0.81

0.60

1.34

0.91

0.70

1.44

1.01

0.80

Group B

0.94

0.51

0.30

1.04

0.61

0.40

1.19

0.76

0.55

1.34

0.91

0.70

1.49

1.06

0.85

1.64

1.21

1.00

Group C

0.94

0.51

0.30

1.04

0.61

0.40

1.24

0.81

0.60

1.44

1.01

0.80

1.64

1.21

1.00

1.84

1.41

1.20

Group D

0.99

0.56

0.35

1.09

0.66

0.45

1.34

0.91

0.70

1.59

1.16

0.95

1.84

1.41

1.20

2.09

1.66

1.45

Please see the IBRD Flexible Loan product note for major terms and conditions related to the loan. These handouts serve as marketing material anddo not provide the complete terms and conditions of IBRD loans. Borrowers should refer to their loan agreements and General Conditions withrespect to individual loans.
Contact: Miguel Navarro-Martin, Manager, Financial Products & Client Solutions, The World Bank Treasury
 mnavarromartin@worldbank.org  +1 (202) 458 4722
1225 Connecticut Avenue NW, Washington, D.C., 20433, U.S.A.

3

The fixed spread term under the IFL is suspended effective April 1, 2021.

4

For some projects addressing Global Challenges with Cross Border Externalities, themaximum loan maturity is extended to up to 50 years and the ARM up to 25 years, with thesame maturity premium as regular loans with 18 to 20 years ARM.

Confidential