ADB raises lending rates

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FE Report
Asian Development Bank (ADB), the country's major development partner, has raised its lending rates for both its US dollar and Japanese yen single currency pool-based loans.
According to information received in Dhaka from the ADB's headquarters Thursday, the lending rate for US dollar pool-based loans will increase from 5.91 per cent to 6.34 per cent for the period from July 1 to December 31, 2007.
It said that this reflects the average cost of borrowings at 5.94 per cent per annum from January 1 to June 30, 2007 plus a spread of 0.40 per cent per annum (representing a lending spread of 0.60 per cent less a waiver of 0.20 per cent).
During the same period, the lending rate for the Japanese yen for pool-based loans will increase from 1.31 per cent to 1.69 per cent.
Its said this also reflects the average cost of borrowings for the pool (1.47 per cent) less net of profit on early redemptions of borrowings (0.18 per cent) -- 1.29 per annum from January 1 to June 30, 2007 plus a spread of 0.40 per cent per annum (representing a lending spread of 0.60 per cent less a waiver of 0.20 per cent).
Besides, the ADB has announced its rebate for its London Inter-Bank Offered Rate (LIBOR)-based loans for the period January 1 to December 31, 2007, ADB mail said.
For US dollar LIBOR-based loans with a rate of LIBOR plus 0.40 per cent, it said adding the rebate will increase from 0.30 per cent to 0.31 per cent.
This reflects the average sub-LIBOR cost of borrowings during the period of January 1 to June 30 2007, ADB mail said.
It said for Japanese yen LIBOR-based loans with a rate of LIBOR plus 0.40 per cent, the rebate will increase from 0.36 per cent to 0.45 per cent.
This reflects the average sub-LIBOR cost of borrowings during the period of January 1 to June 30, 2007, and includes profit on the early redemption of borrowings, which are passed on to borrowers, ADB mail added.