Instrument Comparison

In this section, you can explore and compare the key features of three instruments at a time, including their primary objectives, terms and conditions, eligibility criteria, and disbursement requirements.

Global Credit Financing

(GCR)

Provides financing to enable borrowers to on-lend and/or issue guarantees to support the financing of multi-sector projects.

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Specific Investment Loans

(ESP)

Finances one or more specific projects or subprojects that are wholly defined at the time the IDB's loan is approved.

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Multiple Works Financing

(GOM)

Finance groups of similar, independent and small works with specific characteristics, a sample of which are fully defined.

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Estimated cost of sub-loans based on expected demand for investments and financial capacity of intermediaries

Estimated cost of the specific project or its sub-projects, based on pre-approved expenditures

Estimated cost of subprojects, with the total program size determined by available loan resources ("global envelope")

Maturity: Flexible, Max. 25 years

Weighted Average Life (WAL): Flexible, Max. 15.25 years

Interest Rate: SOFR + Cost of Funding (41bps) + IDB OC Spread (80bps)

Fees:
Commitment Fee: 50 bps
Upfront Fee: n.a.
Draw-down Fee: n.a.

Options:
Flexible Repayment: Available
Interest Rate Options: Available
Currency Options: Available
Eligible for CRDC activation: Yes

Maturity: Flexible, Max. 25 years

Weighted Average Life (WAL): Flexible, Max. 15.25 years

Interest Rate: SOFR + Cost of Funding (41bps) + IDB OC Spread (80bps)

Fees:
Commitment Fee: 50 bps
Upfront Fee: n.a.
Draw-down Fee: n.a.

Options:
Flexible Repayment: Available
Interest Rate Options: Available
Currency Options: Available
Eligible for CRDC activation: Yes

Maturity: Flexible, Max. 25 years

Weighted Average Life (WAL): Flexible, Max. 15.25 years

Interest Rate: SOFR + Cost of Funding (41bps) + IDB OC Spread (80bps)

Fees:
Commitment Fee: 50 bps
Upfront Fee: n.a.
Draw-down Fee: n.a.

Options:
Flexible Repayment: Available
Interest Rate Options: Available
Currency Options: Available
Eligible for CRDC activation: Yes

Definition of expenditures: Investments financed through sub-loans are not defined prior to loan approval, with specific projects determined based on demand.

Project Identification and Approval: A Credit Regulation Agreement must be in place to establish eligibility criteria and approval mechanisms for sub-loans.

Fund Allocation and Execution: Funds are allocated incrementally based on sub-loan approvals and demand.

Definition of expenditures: Expenditures must have been previously agreed upon in the loan proposal.

Project Identification and Approval: All project components must be identified and analyzed before approval

Fund Allocation and Execution: Unused loan balances are canceled upon project completion.

Definition of expenditures: Expenditures must be for a series of subprojects of a similar nature, physically independent but not large enough for direct Bank involvement.

Project Identification and Approval: A representative sample of subprojects must be identified and analyzed before loan approval.

Fund Allocation and Execution: Additional investments are incorporated into the program until loan resources are fully committed.

Disburses incrementally based on approved sub-loans

Disburses against specific eligible expenditures that were pre-approved in the loan agreement

Disburses as subprojects meeting eligibility criteria are identified and approved.

IDB policies and regulations but GN-2349-15 paragraph 3.13 states core principles for projects with financial intermediaries executed by public sector sub borrowers and commercial practices for private sector sub borrowers. IDB financial management policies and regulations

IDB policies and regulations

ESPF - Operations will have the FI Impact Classification (see sections 4.1, 4.2 and 4.3 of the ESPF for specific provisions for FIs)

ESPF full

ESPF - (see section 4.4 of the ESPF for specific provisions for Multiple Works Operations)