FSL terms and conditions
- Public Sector Companies of ADB and Blend countries without a sovereign guarantee and Private Sector Companies in all Regional Member Countries.
- EUR, USD, ZAR, JPY and any lending currency approved by the Bank, including local African currencies.
Maturity and grace period
- Up to 15 years including a 5-year grace period
Lending rate Formula
- Base Rate (Floating or Fixed) + risk-based lending spread
- Floating = 6-month Libor for USD and JPY, 6-month Euribor for EUR, 3-month Jibar for ZAR, or
- Fixed = amortizing swap rate
- 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.
- Interest and any other charges on Bank’s loans are payable semi-annually in accordance with the payment dates selected by the borrower, outside of 1 Jan / 1 Jul.
- Front-end fee: determined during appraisal
- Appraisal fee: determined during appraisal
- Commitment fee: minimum of 0.5%
- Late payment fee: 2% of the unpaid amount
- Swap Unwinding Cost: cost of unwinding the underlying derivative transactions.
- Supervision fee: determined during appraisal
- Other fees (legal, warehousing fees in the case of local currency etc. determined during appraisal)
- 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 portions of loans can be cancelled without penalty.