Terms and Conditions of Japanese ODA Loans (Effective from April 1, 2013)

Category GNI
Per
Capita
(2011)		 Terms Fixed/
Variable		 Standard/
Option		 Interest
Rate
(%)		 Repayment
Period
(Year)		 Grace Period
(Year)		 Conditions
for
Procurement
Least Developed Countries Low-Income
Countries *		 0.01 40 10 Untied
General
Terms		 Fixed Standard 0.70 30 10
Option1 0.65 25 7
Option2 0.60 20 6
Option3 0.55 15 5
Preferential
Terms **		 Standard 0.01 40 10
Option1 0.01 30 10
Option2 0.01 20 6
Low-Income
Countries		 -US$ 1,025 General
Terms		 Fixed Standard 1.20 30 10 Untied
Option1 0.90 25 7
Option2 0.75 20 6
Option3 0.65 15 5
Preferential
Terms **		 Standard 0.25 40 10
Option1 0.20 30 10
Option2 0.15 20 6
Option3 0.10 15 5
STEP *** Standard 0.10 40 10 Tied
Lower-
Middle-Income
Countries		 US$ 1,026-
US$ 1,945		 General
Terms		 Fixed Standard 1.40 30 10 Untied
Option1 0.80 20 6
Option2 0.70 15 5
Variable **** Standard JPY LIBOR-11bp 30 10
Option1 JPY LIBOR-29bp 20 6
Option2 JPY LIBOR-9bp 15 5
Preferential
Terms **		 Fixed Standard 0.30 40 10
Option1 0.25 30 10
Option2 0.20 20 6
Option3 0.15 15 5
Variable **** Standard JPY LIBOR-135bp 40 10
Option1 JPY LIBOR-125bp 30 10
Option2 JPY LIBOR-88bp 20 6
Option3 JPY LIBOR-63bp 15 5
STEP *** Fixed Standard 0.10 40 10 Tied
Middle-Income
Countries		 US$ 1,946-
US$ 4,035		 General
Terms		 Fixed Standard 1.40 25 7 Untied
Option1 0.95 20 6
Option2 0.80 15 5
Variable **** Standard JPY LIBOR+8bp 25 7
Option1 JPY LIBOR-14bp 20 6
Option2 JPY LIBOR+1bp 15 5
Preferential
Terms **		 Fixed Standard 0.30 40 10
Option1 0.25 30 10
Option2 0.20 20 6
Option3 0.15 15 5
Variable **** Standard JPY LIBOR-135bp 40 10
Option1 JPY LIBOR-125bp 30 10
Option2 JPY LIBOR-88bp 20 6
Option3 JPY LIBOR-63bp 15 5
STEP *** Fixed Standard 0.10 40 10 Tied
Upper-
Middle-Income
Countries		 US$ 4,036-
US$ 7,035		 General
Terms		 Fixed Standard 1.70 25 7 Untied
Option1 1.60 20 6
Option2 1.50 15 5
Variable **** Standard JPY LIBOR+38bp 25 7
Option1 JPY LIBOR+50bp 20 6
Option2 JPY LIBOR+70bp 15 5
Preferential
Terms **		 Fixed Standard 0.60 40 10
Option1 0.50 30 10
Option2 0.40 20 6
Option3 0.30 15 5
Variable **** Standard JPY LIBOR-106bp 40 10
Option1 JPY LIBOR-100bp 30 10
Option2 JPY LIBOR-68bp 20 6
Option3 JPY LIBOR-48bp 15 5
Uppermost-
Middle-Income
Countries		 US$ 7,036-
US$12,475		 General
Terms		 Variable **** Standard JPY LIBOR+48bp 25 7 Untied
Option1 JPY LIBOR+55bp 20 6
Option2 JPY LIBOR+75bp 15 5
Preferential
Terms **		 Standard JPY LIBOR-90bp 30 10
Option1 JPY LIBOR-63bp 20 6
Option2 JPY LIBOR-43bp 15 5
Consulting Services For consulting services, the interest rate will be minimal (0.01%) and the repayment, grace periods and conditions for procurement will be the same as those for main components.
Options for
Program Type Japanese ODA Loans		 In case of co-financing, it is possible to apply the same repayment terms as co-financer's lending while maintaining the concessionality of Yen loans.

* For Low-Income LDCs, the term and condition of 0.01% interest rate and 40-year repayment period including 10-year grace period are applied, irrespective of sectors and fields.

** Preferential Terms are applied for the following sectors and fields:
(i) Global Environmental Problems and Issues
(ii) Health and Medical Care and Services
(iii) Disaster Prevention and Reduction
(iv) Human Resource Development

**** Although the base rate of Variable Loan is the value of the 6-month Japanese Yen LIBOR, the spread shall be fixed.The actual value of interest rate will be capped so that the grant element over the life of the loan is at least 25%, and if the actual value of interest rate is lower than 0.1%, the interest shall be 0.1%.

***** Irrespective of the country category, the term and condition of 0.01% interest rate and 40-year repayment period including 10-year grace period are applied to projects assisting recoveries from disasters, including Stand-by Emergency Credit for Urgent Recovery (SECURE). For Stand-by Emergency Credit for Urgent Recovery (SECURE), the term and condition of 20-year repayment period including 6-year grace period, or 15-year repayment period including 5-year grace period are also available, in order to apply Currency Conversion Option.

  • The concessionality level of optional terms does not exceed that of standard terms.
  • Under the EPSA initiative, the loan for projects co-financed with the AfDB are extended using "Preferential Terms," determined for each income category; in the case for Low-Income LDCs, the term and condition of 0.01% interest rate and 40-year repayment period including 10-year grace period are applied.
  • A two-step loan extended to the AfDB to cover its sub-loans to private enterprises under EPSA is extended using the term and condition of 0.55% interest rate and 40-year repayment period including 10-year grace period.
  • For countries complying with ongoing IMF-supported programs or receiving grants from IDA, it is possible to modify the terms and conditions of the ODA Loans so as to meet the IMF's concessionality criteria.
  • For the countries of which GNI per capita level exceeds that of Upper-Middle-Income Countries, only LIBOR-based term is applied.
    For Upper-Middle-Income Countries, LIBOR-based term is applied in principle, although General Terms or Preferential Terms are also available.
    For Lower-Middle-Income Countries and Middle-Income Countries, General Terms, Preferential Terms or STEP are applied in principle, although LIBOR-based term is also available.
  • Major Economics Classified by Income Category

  • Product note of Japanese ODA Loans (PDF/1.23MB)