Improving Governance in Africa

AfDB's loan pricing Fully Flexible Sovereign and Sovereign Guaranteed Loans Currency: USD, EUR, JPY, ZAR and any other currency designated as lending currency of the Bank Maturity: Up to 25 years, with up to 8 years grace period Lending rate: Base rate (floating or fix) + funding cost margin + lending spread (80 bps) + maturity premium Maturity premium: Dependent on the average loan maximum maturity of the loan (0 bps for up to 12.75 years, 10 bps for Average Loan Maturity greater than 12.75 years and up to 15 years and 20 bps for Average Loan Maturity greater than 15 years). Fees: 25 bps commitment fee and 25bps front end fees Repayment terms: Equal instalments of principal after expiration of grace period. Other repayment terms may also be considered. Optionality: The borrower can fix, un-fix and refix the base rate; caps and collars are available for the base rate; currency conversion possibilities on disbursed and undisbursed portion of the loan. Non-Sovereign Loans Currency: USD, EUR, JPY, ZAR and any other currency designated as lending currency of the Bank Maturity: Up to 15 years with up to 5 years grace period. Longer maturities can be considered on a case-by-case basis. Lending rate: Base rate + lending margin Base rate: Floating base rate, fixed base rate or all-in cost of funds (for local currency lending) Lending margin: based on project specific credit risk rating in line with the Bank's non-sovereign pricing framework. Margin includes credit risk premium (derived from probabilities of default and loss given default) and concentration risk premium. Fees: 1% front end fees, 0 to 1% Appraisal fees and 0.5% to 1% commitment fee Repayment terms: Equal instalments of principal after expiration of grace period. Other repayment terms may also be considered. 75

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