Finances individual operations under a global line of credit. Aims to (i) strengthen the preparation of projects in the Bank's operational program; (ii) increase support to encompass financing for project start-up activities prior to the first disbursement and to lay the groundwork for institutional sustainability. The funds can also be used to encourage ex-post evaluation to measure development impacts.
Loan dimension: Individual operations are capped at US$5million
Examples: Conducting pre-feasibility studies and design as well as other required studies needed as for a loan to improve access to health services.
Lending rate: SOFR base rate + IDB Ordinary Capital variable lending spread:
SOFR base rate is USD SOFR daily overnight compounded rate + IDB's funding margin. Funding margin for 1st quarter 2025 is 41 bps.
IDB’s Ordinary Capital lending spread - for 2025 is 80 bps.
Fees: Commitment fee 50 bps; applicable on undisbursed loan amount and starts to accrue 60 days after loan contract signature.
Financial terms applicable to the potential new loan are the same applicable to any Investment loan.
For applicable loan charges and conversion option fees, please refer to www.iadb.org/rates
If after the pre-feasibility studies, the project is deemed to be able to be executed and therefore a new loan for this purpose is approved, the first disbursement under the approved loan is done to repay principal interest and fees under the Project Preparation and Execution Facility.
If no new loan is approved, then the Borrower would need to repay the IDB all disbursed amounts and charges in a period of 5 years.
Finance investments with defined objectives and scopes
Specific Investment Loans
(ESP)
Finance of a series of small independent investment projects
Multiple Works Loans
(GOM)
Combining financial instruments ensures timely funds, spreads risk, and optimizes resources for disaster recovery and climate resilience. This approach supports immediate response and long-term investment, creating a robust and sustainable financial strategy.