Funding Margin

The Funding Margin is a component of the lending rate of the Bank’s Non-Sovereign Guaranteed Loans (NSGLs) and Sovereign Guaranteed Loans (SGLs) under the African Development Bank (ADB) window.  It reflects the semester weighted average of the difference between:

  • a)  the refinancing rate of the Bank as to the borrowings linked to the respective reference rate (6 month LIBOR for USD and JPY, 6 month EURIBOR for EUR and 3 month JIBAR for ZAR), and allocated to all its floating interest loans denominated in the respective currency and,
  • b)  the respective reference rate (6 month LIBOR for USD and JPY, 6 month EURIBOR for EUR and 3 month JIBAR for ZAR) for each semester ending on 30 June and on 31 December. 

The Funding Margin shall be determined twice per year on 1 January for the semester ending on 31 December and on 1 July for the semester ending on 30 June.  This spread shall apply to the respective reference rate (6 month LIBOR for USD and JPY, 6 month EURIBOR for EUR and 3 month JIBAR for ZAR) which resets on 1 February and on 1 August for all loans under the ADB lending window.