A “Menu” Approach to the IDB Financial Offerings

Sovereign borrowers can choose from a menu of embedded options to tailor financial terms and conditions of Ordinary Capital (OC) loans. The FFF also offers stand alone hedges to transform risk characteristics of all IDB obligations. These financial solutions address borrowers’ changing needs during the life of IDB loans. Options are available at any time during the life of a loan, on a partial loan amount, on the full outstanding loan balance, or on a loan portfolio level, subject to market availability.

Options offered under the FFF include:

• Commodity Hedges
• Local Currency Financing
• Risk Management Options of interest rate and currency exposures
• Flexible Repayment Options
• Management of legacy financial products

As of January 1st, 2012, the FFF was fully implemented and became the only platform for approval of all new OC Sovereign Guaranteed (SG) loans. Until January 1st, 2012, loans were approved as Single Currency Facility LIBOR . The options described above, if operationally feasible, will be considered upon borrower’s request.

• Proposal for a Flexible Financing Facility for Ordinary Capital for Sovereign Guaranteed Loan Operations (PDF)

Contact us to discuss the financial solution that is most suitable to your needs.