"Investment loans finance goods, works, and services for projects or sub projects that promote social and economic development. At loan approval, the cost of the project, its design, and technical, financial and economic feasibility have been estimated. Investment loans are dimensioned based on the cost required to achieve the project’s development objectives and they disburse against specific eligible expenditures identified as inputs necessary to achieve the project’s objectives."
Typically used: Enhanced access to water and sanitation services by rehabilitating distribution networks, building storage tanks, and upgrading pumping stations.
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.
Interest and Currency conversion options are available.
For applicable loan charges and conversion option fees, please refer to www.iadb.org/rates
Flexible repayment options subject to a maximum maturity of 25 years, and maximum Weighted Average Life (WAL) of 15.25 years.
Standard Grace Period: 5.5 years.
Standard amortization schedule (semiannual, straight-line payments), bullet repayment structures, extended grace periods, uneven amortization schedules, and shorter repayment periods are available without additional cost.
Finance results of an existing or new government program
Loan Based on Results
(LBR)
Finance policy reforms or institutional changes
Policy-Based Loans
(PBL)
Liquidity Risk Management
Flexible Repayment Options
(N/A)
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.
The program transformed the lives of 1,727 families in San Salvador’s urban settlements by tackling flood risks, improving water and sanitation access, and fostering social inclusion. Structural investments and community interventions enhanced the safety, health, and living conditions for residents of these settlements.
The program ensured safer homes and healthier lives for families. 1,727 households were provided with access to clean water and sanitation, reducing illnesses. Public spaces were revitalized, creating safe areas for children and families. As a result, property values rose by 33%, boosting economic stability. Flood and landslide risks were entirely mitigated, offering lasting resilience.
The project strengthened Ecuador's National Transmission System (SNT) by constructing 270 km of transmission lines and expanding substation capacity by 1,796.37 MVA. These investments enhanced energy transmission capacity, supported the country’s growing demand, and improved service reliability for users across the nation.
The project delivered significant improvements to Ecuador's energy infrastructure, increasing effective transmission capacity by 1,037.58 MVA and meeting an additional 395 MW of energy demand. It expanded the energy network with modernized substations and transmission lines, improving reliability and operational efficiency to support sustainable energy development in the country.
