The SCF LIBOR product was introduced in 2003 to provide borrowers with a market based instrument that would enable greater flexibility to manage interest rate exposures in IDB debt. The interest rate cap system initially embedded in the SCF-LIBOR to mitigate large fluctuations in LIBOR rates was eliminated in 2007 and replaced with a country-specific approach to interest rate exposure management in IDB debt. On January 1, 2012, the SCF-LIBOR closed for 100% Ordinary Capital (OC) new loan approvals and was replaced by the Flexible Financing Facility (FFF). The SCF-LIBOR product continues to be available for the OC portion of blended loans. See Concessional Financing.

Principal Terms and Conditions of the SCF-LIBOR

• Approval in USD, CHF, EUR, JPY or a combination.
• Repayment terms: Investment loans: typically 25 years final maturity, 5 year grace period and straight line semiannual amortization thereafter. Policy Based Loans (PBLs): 20 years final maturity, 5 year grace period and straight line semiannual amortization thereafter.
• Interest rate: Cost base plus funding margin plus applicable lending charges. For applicable rates, please refer to Interest Rates and Charges.
• Cost base: 3-month LIBOR that resents the 1st of January, April, July and October.
• Funding Margin: IDB’s Weighted Average Cost of Allocated Debt over/below 3-month LIBOR.
• Loan Charges: composed of lending spread, credit commission and inspections and supervision fee. For the latest charges refer to Interest Rates and Charges.
• Conversion to Fixed Rate: please refer to Interest Rate Options.
• Conversion to Local Currency: subject to market availability; see LC financing options.
• Transaction fees: Please refer to Interest Rates and Charges.
• Prepayments: Pass-through to borrowers of IDB’s cost/gain from redeployment of funds.

For historic SCF rates, please refer to:

• SCF-LIBOR-USD (PDF)
• SCF-LIBOR-YEN (PDF)