JICA's Commitment to Sustainable Development slide image

JICA's Commitment to Sustainable Development

jiCA Terms and Conditions of ODA Loans (effective from April 1, 2023) (2/2) Category GNI Per Capita (2021) Terms Grace Period (years) 10 JICA at a Glance Business Activities Upper Middle Income Countries and Uppermost Middle Income Countries US$ 4,256 - Funding Activities JICA's Bonds Fixed/ Floating Standard/Option Interest Rate (%) Repayment Period (years) Conditions for Procurement Standard 0.95 30 Preferential Terms for High Specification Option 1 0.85 25 7 Fixed Option2 0.75 20 6 Option3 0.65 15 5 Longer option TORF+110bp 40 Standard TORF+90bp 30 11 10 10 Floating Option1 TORF+80bp 25 7 Option2 TORF+70bp 20 Preferential Terms Option3 Standard TORF+60bp 15 2.10 30 650 10 Option1 1.95 25 7 Fixed Untied Option2 1.75 20 Option3 1.50 15 65 Longer option TORF+130bp 40 10 Standard TORF+110bp 30 10 Floating Option1 TORF+100bp 25 7 Option2 TORF+90bp 20 6 General Terms Option3 TORF+80bp 15 5 Standard 2.30 30 10 Option1 2.15 25 7 Fixed Option2 1.95 20 6 Fixed Option3 Standard 1.70 15 5 0.20 40 10 Tied For consulting services, the interest rate will be minimal (0.10%) and the repayment, grace periods and conditions for procurement will be the same as those for main components. - Social/ Sustainability Bond Framework Overview Recent Highlights Appendix STEP(5) Consulting Services (6) Options for Program Type Japanese ODA Loans (7) In case of co-financing, it is possible to apply the same repayment terms as co-financer's lending while maintaining the concessionality of Yen loans. 1 For Low-Income LDCs, three-year transition period will be granted to recipient countries that will move from the category of Low-Income LDCs, and, during the period, the terms and conditions for Low-Income LDCs will be applied to the projects of the countries.. 2 Preferential Terms for High Specification will be applicable to projects promoting quality infrastructure. The applicability of the terms will be decided on a case-by-case basis. 3 Preferential Terms are applied to the following sectors and fields to all countries (except Low-Income LDCs): (i) Issues on Global Environmental and Climate Change, (ii) Health and Medical Care and Services, (iii) Disaster Prevention, and Reduction, (iv) Human Resource Development. 4 The base rate of floating rate is the value of the 6-month TORF, and the fixed spread remains constant over the life of the loan. If the base rate plus fixed spread is lower than 0.1%, the interest shall be 0.1%. 5 Special Terms for Economic Partnership (STEP) is extended to the projects for which Japanese technologies and know-how are substantially utilized, based on the recipient countries' request to utilize and transfer excellent technologies of Japan. Countries (except LDCs), which are eligible for tied aid under Arrangement on Officially Supported Export Credits issued by OECD, are eligible for STEP terms. 6 Irrespective of the income category, the term and condition of 0.10% interest rate and 40-year repayment period including 10-year grace period are applied to projects assisting recoveries from disasters, including Stand-by Emergency Credit for Urgent Recovery (SECURE). For Stand-by Emergency Credit for Urgent Recovery (SECURE), the term and condition of 20-year repayment period including 6-year grace period, or 15-year repayment period including 5-year grace period are also available, in order to apply Currency Conversion Option. 7 For Contingent Credit Enhancement Facility for PPP Infrastructure Development (CCEF-PPP), only floating rate will be applied irrespective of income category. The terms on conditions are individually set within the following range of interest rate as well as repayment period (In the case of short term financial support, however, the repayment period is 10 years); Interest rate: TORF +35 ~55bp, Repayment period: maximum 40-year(maximum 30-year drawdown period plus 10 year) Notes Under the EPSA (Enhanced Private Sector Assistance for Africa) initiative, the loan for projects co-financed with the AfDB are extended using "Preferential Terms," determined for each income category; in the case for Low-Income LDCs, the term and condition of 0.10% interest rate and 40-year repayment period including 10-year grace period are applied. For countries complying with ongoing IMF-supported programs or receiving grants from IDA, it is possible to modify the terms and conditions of the ODA Loans so as to meet the IMF's concessionality criteria. For General terms and Preferential terms, fixed rate for all countries (except Low-Income LDCs) will be revised on a regular basis so that its concessionality will be equal to that of floating rate. For Upper-Middle-Income Countries and Uppermost-Middle-Income Countries, floating rate will be applied in principle, although fixed rate could be applied. 39
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