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Official Development Assistance Loans

Terms and Conditions of Japanese ODA Loans

Terms and Conditions of Japanese ODA Loans (Effective from October 1, 2021)

Category GNI Per Capita
(2019)
Terms Fixed/Floating Standard/Option Interest Rate (%) Repayment Period (years) Grace Period (years) Conditions for Procurement
Low-Income Least Developed Countries1
(- US$ 1,035)
  0.01 40 10 Untied
Least Developed Countries

or

Low Income Countries
(- US$ 1,035)
Preferential Terms for High Specification(2, same as below) Fixed Standard 0.25 30 10 Untied
Option1 0.20 25 7
Option2 0.15 20 6
Option3 0.10 15 5
Preferential Terms(3, same as below) Floating(4, same as below) Longer option TORF+40bp 40 10
Standard TORF+30bp 30 10
Option1 TORF+25bp 25 7
Option2 TORF+20bp 20 6
Option3 TORF+15bp 15 5
Fixed Standard 0.60 30 10
Option1 0.50 25 7
Option2 0.35 20 6
Option3 0.20 15 5
General Terms Floating  Longer option TORF+50bp 40 10
Standard TORF+40bp 30 10
Option1 TORF+35bp 25 7
Option2 TORF+30bp 20 6
Option3 TORF+25bp 15 5
Fixed Standard 0.70 30 10
Option1 0.60 25 7
Option2 0.45 20 6
Option3 0.30 15 5
Lower- Middle- Income Countries US$ 1,036 -
US$ 4,045
Preferential Terms for High Specification Fixed Standard 0.50 30 10 Untied
Option1 0.45 25 7
Option2 0.40 20 6
Option3 0.35 15 5
Preferential Terms Floating  Longer option TORF+90bp 40 10
Standard TORF+70bp 30 10
Option1 TORF+60bp 25 7
Option2 TORF+50bp 20 6
Option3 TORF+40bp 15 5
Fixed Standard 1.00 30 10
Option1 0.85 25 7
Option2 0.65 20 6
Option3 0.45 15 5
General Terms Floating  Longer option TORF+110bp 40 10
Standard TORF+90bp 30 10
Option1 TORF+80bp 25 7
Option2 TORF+70bp 20 6
Option3 TORF+60bp 15 5
Fixed Standard 1.20 30 10
Option1 1.05 25 7
Option2 0.85 20 6
Option3 0.65 15 5
Upper-Middle- Income Countries and Uppermost- Middle-Income Countries US$ 4,046 - Preferential Terms for High Specification Fixed Standard 0.70 30 10 Untied
Option1 0.65 25 7
Option2 0.60 20 6
Option3 0.55 15 5
Preferential Terms Floating  Longer option TORF+110bp 40 10
Standard TORF+90bp 30 10
Option1 TORF+80bp 25 7
Option2 TORF+70bp 20 6
Option3 TORF+60bp 15 5
Fixed Standard 1.20 30 10
Option1 1.05 25 7
Option2 0.85 20 6
Option3 0.65 15 5
General Terms Floating  Longer option TORF+130bp 40 10
Standard TORF+110bp 30 10
Option1 TORF+100bp 25 7
Option2 TORF+90bp 20 6
Option3 TORF+80bp 15 5
Fixed Standard 1.40 30 10
Option1 1.25 25 7
Option2 1.05 20 6
Option3 0.85 15 5
STEP Fixed Standard 0.10 40 10 Tied
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.

1 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. Three-year transition period will be granted to recipient countries that will move from the category of Low-Income LDCs, and, during the period, the terms and conditions for Low-Income LDCs will be applied to the projects of the countries.

2Preferential Terms for High Specification will be applicable to projects promoting quality infrastructure.The applicability of the terms will be decided on a case-by-case basis.

3 Preferential Terms are applied to the following sectors and fields:
(i) Issues on Global Environmental and Climate Change
(ii) Health and Medical Care and Services
(iii) Disaster Prevention and Reduction
(iv) Human Resource Development

4 The base rate of floating rate is the value of the 6-month TORF, and the fixed spread remains constant over the life of the loan. If the base rate plus fixed spread is lower than 0.1%, the interest shall be 0.1%.

5 Special Terms for Economic Partnership (STEP) is extended to the projects for which Japanese technologies and know-how are substantially utilized, based on the recipient countries' request to utilize and transfer excellent technologies of Japan. Countries (except LDCs), which are eligible for tied aid under Arrangement on Officially Supported Export Credits issued by OECD, are eligible for STEP terms.

6 Irrespective of the income 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.

7For Contingent Credit Enhancement Facility for PPP Infrastructure Development (CCEF-PPP), only floating rate will be applied irrespective of income category. The terms on conditions are individually set within the following range of interest rate as well as repayment period (In the case of short term financial support, however, the repayment period is 10 years).
- Interest rate: TORF + 35 ~55bp
- Repayment period: maximum 40-year(maximum 30-year drawdown period plus 10 year)

Notes

  • Under the EPSA (Enhanced Private Sector Assistance for Africa) 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.
  • 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 General terms and Preferential terms, fixed rate for all countries (except Low-Income LDCs) will be revised on a regular basis so that its concessionality will be equal to that of floating rate. Next revision in April 2022 would be considered referring to the trends in swap market of reference rate succeeding LIBOR.
  • For Upper-Middle-Income Countries and Uppermost-Middle-Income Countries, floating rate will be applied in principle, although fixed rate could be applied.

Historical Terms and Conditions of Japanese ODA Loans

Terms and Conditions of Japanese ODA Loans Denominated in US Dollars

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