Interest Rate Collar Clause Samples

Interest Rate Collar. Until the Indebtedness is paid in full, Borrower shall keep in place an interest rate collar issued by a firm rated at least A by any major rating institution or by a firm acceptable to Lender. The collar shall cover a principal amount of at least 50% of the Loan. The collar shall become effective and begin to pay benefits to Borrower in the event that the per annum interest payable under Section 2.2 exceeds 11%.

Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. Loans for which Legal Agreements incorporate the 2017 Loan Regulations 1. For the purposes of this Appendix 2, “Loan Agreement” means (i) each loan agreement referred to in the table in Appendix 2 of the Letter Agreement; (ii) the loan agreement for each project or program referred to in the table below; and (iii) the loan agreement for any other project or program not referred to in the Letter Agreement or table below, and which, in the case of (i), (ii) and (iii), has been or will be approved by the Board before 1 January 2022. Loan or Project No. Project Name 4050 Second Health System Enhancement to Address and Limit COVID-19 under APVAX 4089 Facilitating Youth School-to-Work Transition Program – Subprogram 3 4102 Local Governance Reform Program – Subprogram 2 55105-001 Build Universal Health Care Program – Subprogram 1 54332-001 Supporting Innovation in the Philippine Technical and Vocational Education and Training System Project ▇▇▇▇▇-▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Project

Interest Rate Collar. The Borrower is party to a no-fee interest rate collar (“Collar”) with a notional amount of $100,000,000, a 30-day LIBOR rate range of 6.36% (floor) to 9.50% (ceiling) and an expiration date of March, 2003. The purpose of the Collar is to provide a hedge against the effects of rising interest rates. Borrower will make payments under the terms of the Collar when the 30-day LIBOR rate is below the floor to raise the effective rate to 6.36%, and will receive payments when the 30-day LIBOR rate is above the ceiling, to lower the effectiveness rate to 9.50%, thus assuring that the Borrower’s effective 30-day LIBOR rate is always within the above-stated range. When the 30-day LIBOR rate is within the range, no payments are made or received under the Collar. Amounts payable or receivable under the Collar will be accounted for as an adjustment to interest expense.

Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. Southeast Asia Department 29 October 2021 ▇▇. ▇▇▇▇▇▇ ▇. Dominguez Secretary Department of Finance ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ of the Philippines Dear Secretary ▇▇▇▇▇▇▇▇▇:

Interest Rate Collar. Until the Indebtedness is paid in -------------------- full, Borrower shall keep in place an interest rate cap or collar issued by a firm rated at least A by any major rating institution or by a firm acceptable to Lender. The collar shall cover a principal amount of at least 75% of the Loan. The collar shall become effective and begin to pay benefits to Borrower in the event that the Borrower's Spread falls below 13.5%. Notwithstanding the forgoing Borrower will not be required to obtain such cap or collar so long as the Borrower's Spread exceeds 14.5%.

Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. 28 October 2021 Ms. ▇▇▇▇▇▇ ▇▇▇▇▇▇ Secretary Economic Relations Division Ministry of Finance Government of Bangladesh Dhaka, Bangladesh Dear Ms. Secretary: Subject: Notification of the Alternative Reference Rates for ADB’s Sovereign Operation Loans This letter relates to the notification of the new alternative reference rates in connection with the London interbank offered rate (“LIBOR”) transition for the Asian Development Bank (“ADB”). In July 2017, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates the administrator of LIBOR, announced its intention to phase out the reference rate by the end of 2021. On 5 March 2021, the FCA announced that the publication of LIBOR on a representative basis will cease for most settings immediately after 31 December 2021, and for certain United States dollar LIBOR settings immediately after 30 June 2023. As LIBOR is used as a reference rate for regular loans made from ADB’s Ordinary Capital Resources under sovereign operations(“regular OCR Loans”), ADB has been preparing for the discontinuation of LIBOR to ensure an orderly transition to alternative reference rates for the benefit of ADB and its borrowers. In October 2020 ADB’s Board of Directors (the “Board”) approved an amendment to the OrdinaryOperations Loan Regulations Applicable to Regular Loans Made from ADB’s Ordinary Capital Resources (“OCR Loan Regulations”) to enable the reference rate transition of regular OCR Loans. In connection with this approval, ADB previously sought your consent to the application ofthe amended OCR Loan Regulations (the “Amendment Letter”). On 26 July 2021, the Board approved the reference rate transition for ADB’s LIBOR-based loan product, including to rename it the ...