ADB trims lending rates for dollar loans

The Manila-based multilateral funding agency Asian Development Bank (ADB) has lowered its lending rates for both US dollar and multi-currency pool-based loans, the bank said in a statement.

For the first half of this year, the lending rate for US dollar pool-based loans will drop to 6.27 percent per annum from 6.31 percent.

"This reflects the average cost of borrowings – 5.67 percent per annum – from July to December 2003 plus a spread of 0.6 percent per annum," the ADB said.

During the same period, the lending rate for multi-currency pool-based loans will fall to 2.13 percent from 2.46 percent, also reflecting the average cost of borrowings for the pool of 1.53 percent per annum in the second half of 2003, and a lending spread of 0.6 percent per annum.

Separately, ADB announced the new rebate rates for its (London Interbank Offered Rate) LIBOR-based loans. For US dollar LIBOR-based loans billed with a rate of LIBOR + 0.6 percent per annum between July and December 2003, the rebate has been raised to 0.35 percent from 0.33 percent per annum.

For Japanese yen LIBOR-based loans billed with a rate of LIBOR + 0.6 percent per annum in the second half of 2003, the rebate remains unchanged at 0.39 percent per annum.

"These rebate rates reflect the spreads of ADB’s costs of borrowings dedicated to LIBOR-based loans in their respective currencies," the bank said.

The last time the ADB adjusted its loan rates was in the second half of 2002, when it lowered its lending rates on its US dollar loan and multi-currency loan facilities to 6.34 percent per annum (from 6.69 percent) and to 3.91 percent per annum (from 5.08 percent), respectively.