FFL terms and conditions


  • Regional member countries (RMC) and public sector enterprises with a sovereign guarantee from Blend countries and ADB countries.


  • USD, EUR, JPY, ZAR and any other currency designated as lending currency of the Bank.

Maturity and grace period 

  • Maturity-based pricing with maximum maturity and grace period of 25 years and 8 years respectively, both starting from loan signature.

Lending rate 

Maturity premium

  • 0 bps for loans up to 12.75 years
  • 10 bps for loans with average maturity greater than 12.75 years to 15 years
  • 20 bps for loans with average maturity greater than 15 years to 17 years

Floating base rate

  • 6-month Libor for USD and JPY, 6-month Euribor for EUR, 3-month Jibar for ZAR

Fixed base rate

  • Amortizing swap rate as determined by the Bank and communicated to the borrower 

Funding margin

  • The Bank’s cost of funds relative to the applicable reference rate, is reset twice a year on 1 January and 1 July and remains variable until the maturity date. 

Repayment terms

  • Equal installments of principal after expiration of the grace period. Other repayment terms, notably, annuities, bullet, step-up or step-down amortization may be considered. 

Payment dates 

  • Interest and any other charges on Bank’s loans are payable semi-annually on any of the following payment dates: 1 February and 1 August or any combination of the 1st or 15th of any month (excluding 1st January) in accordance with the payment frequency selected by the borrower. 


  • No front-end fees are levied for sovereign guaranteed operations.
  • However, a time dependent graduated commitment fee is charged on fast disbursing policy based loan, not disbursed as per original drawdown schedule.

Interest rate conversion

  • The base rate may be fixed, unfixed and re-fixed for all or part of disbursed loan amounts any time at borrower request. The first fixings of the outstanding loan amount up to its full maturity would be free of charge, but any subsequent conversion will attract fees as determined in the conversion guidelines.
  • Caps and collars are available for floating base rate.
  • Shorter maturity conversions apply to Interest rate conversions.

Currency conversion

  • All or part of the undisbursed balance of a loan may be converted into another lending currency of the Bank.
  • All or part of the disbursed balance of a loan may be converted into another lending currency.
  • Shorter maturity conversion apply to currency conversions.

Currency substitution clause 

  • If for unforeseen events, the Bank is unable to disburse the lending currency set in the loan agreement or a Borrower is not able to repay amounts due in the loan lending currency, these payments can be made in a third currency agreed between the Bank and the Borrower for the duration of the unforeseen events.

Prepayment premium 

  • In case of prepayment of a loan with a fixed base interest rate or any other conversion feature, the Bank may charge a prepayment penalty that reflects the cost of unwinding the underlying transaction(s).


  • Undisbursed portion of loans can be cancelled without penalty.