Examples of Concessionality Spread in a sentence
Following the calculation worksheet of the Funding Request Template, the amount is calculated as the net present value of the Concessionality Spread, applied to the projected outstanding notional amount of the loan over its life, discounted using the corresponding swap curve, and based on a projected disbursement schedule, at the time of Funding Request submission.
At quarterly intervals, the Coordination Unit reviews the Concessionality Spread and its Euro equivalent based on market conditions and may adjust the amounts for subsequent Funding Requests to ensure consistent concessionality levels (previous Allocations are not affected).
The CFF provides upfront funding (the Concessionality Amount) for a Benefitting Country to an ISA in an amount that would cover, on a net present value basis, a pre-defined Concessionality Spread for the disbursement period of an ISA loan.
The amount of funds needed to meet the Concessionality Spread is calculated by the ISA and included as part of the Funding Request submitted by the Benefitting Country.
The application of the Concessionality Spread across all Underlying Operations enables consistent implementation of CFF support.
The ISA is expected to apply the same operational policies and procedures applicable to the loan portion of the Underlying Operation (excluding any repayment terms) to the additional concessionality portion as part of 4 ISAs use the calculation worksheet based on the U.S. dollar Concessionality Spread and the U.S. dollar swap curve, or the Euro equivalent spread and the Euro swap curve.
The Concessionality Spread, which reflects the difference between: (i) the sum of the fixed reference rate and variable spread applicable to an IBRD loan with an 18-20 years average repayment maturity and (ii) IDA regular terms, and its Euro equivalent, is posted on the CFF website on a quarterly basis, as an updated calculation by the Coordination Unit to reflect then-current market and pricing conditions.
At the time of the Concessionality Amount calculation, the fixed rate equivalent of the ISA lending rate minus the Concessionality Spread will be floored at IDA regular terms.18 Calculated at the NPV of the Concessionality Spread.Associated ISA Costs for the Concessionality Component19 DescriptionAmount (USD) Total Costs Example to Calculate Concessionality Amount:Assuming a USD 100 million loan with 2 disbursments repayable in 2 years.
The Concessionality Spread, which reflects the spread between the IBRD fixed lending rate and IDA regular terms, and its Euro equivalent is posted on the CFF website on a quarterly basis, as an updated calculation by the Coordination Unit to reflect then-current market and pricing conditions.
At the time of the Concessionality Amount calculation for the Funding Request, the fixed rate equivalent of the ISA lending rate5 minus the Concessionality Spread will be floored at IDA regular terms.