LC financing enhances the ability to manage currency exposures and better match project cash flows of sovereigns and sub national entities. Subject to market availability, borrowers may access local currency financing at loan approval or through conversion of disbursements or outstanding loan balances of dollar denominated loans. LC options are available in a growing number of local currencies and offer a variety of attractive features. LC financing is highly customized to borrower needs and promotes valuable dialogue with the IDB.

LC Financing options include:

• Lending in LC (PDF)
• Hedging through direct currency swaps against existing IDB debt (PDF)
• Guarantees in LC

The IDB will extend LC financing in fully deliverable or non-deliverable format, depending on market availability.

For more information, see Local Currency Financing. (PDF)