ADB cuts lending rates

The Asian Development Bank (ADB) has reduced lending rates for both its US dollar and Japanese yen single currency pool-based loans.

From January to end June 2006, the lending rate for US dollar pool-based loans will decrease from 6.14 percent to 5.94.

This reflects the average cost of borrowings - 5.54 percent per annum from July to December 2005 plus a spread of 0.40 percent per annum (this represents a lending spread of 0.60 percent points less a waiver of 0.20 percent).

For the same period, the lending rate for the Japanese yen pool-based loans will fall from 1.71 percent to 1.49. This reflects the average cost of borrowings for the pool of 1.09 percent per annum from July to end December 2005 plus a spread of 0.40 percent per annum (this represents a lending spread of 0.60 percent points less a waiver of 0.20 percent).

The ADB also announced the rebate for its ADB LIBOR-based loans for the July to December 2005 period. For US dollar LIBOR-based loans that were billed with a rate of LIBOR plus 0.40 percent during the six months, the rebate is 0.31 percent per annum, slightly lower than the 0.32 percent rebate from the previous period.

For Japanese yen LIBOR-based loans that were billed with a rate of LIBOR plus 0.40 percent per annum during the same period, the rebate is 0.39 percent per annum, which is unchanged from the previous period.

The rates reflect ADB’s average costs of borrowings dedicated to LIBOR-based loans in their respective currencies.