Standard loans

• AfDB offers long-term loans to public- and private-sector borrowers
• Interest may be fixed or variable
• Loans may be in USD, EUR, JPY, and ZAR; lending in other currencies may be possible
• Tenors of up to 20 years (for sovereign-guaranteed loans) or up to 15 years (for non-sovereign-guaranteed loans), with up to 5-year grace periods
• Typically, repayment must be in equal installments of principal (though there is some flexibility in this respect)
• Interest rate equals a base rate plus a funding margin, plus a credit-risk based margin (of 0.60% for loans with a sovereign guarantee)
• No front-end fee for loans with a sovereign guarantee
• 1% front-end fee for loans without a sovereign guarantee
• There may be an appraisal fee charged by the bank
• Commitment fee

Local currency products

• Public sector standard loans may not be provided to countries ineligible to receive non-concessional financing
• AfDB offers synthetic local currency long-term loans to public- and private-sector borrowers
• Availability of a non‐deliverable forward contract or any other hedge with a market counterparty is the cornerstone of the product
• Interest may be fixed or variable
• Loans may be in USD, EUR, JPY, and ZAR; lending in other currencies may be possible
• Tenors of up to 20 years (for sovereign-guaranteed loans) or up to 15 years (for non-sovereign-guaranteed loans), with up to 5-year grace periods
• Typically, repayment must be in equal installments of principal (though there is some flexibility in this respect)
• Interest rate equals a base rate plus a funding margin, plus a credit-risk based margin (of 0.60% for loans with a sovereign guarantee)
• No front-end fee for loans with a sovereign guarantee
• 1% front-end fee for loans without a sovereign guarantee
• There may be an appraisal fee charged by the bank
• Commitment fee

Syndication of non-sovereign guaranteed loans

• A- and B-loan structure, in which AfDB acts as the lender of record
• The bank may, through B‐loan syndication, fund any project or sector eligible for a non-sovereign-guaranteed loan in a regional member country, provided that the country signs a comfort letter explicitly recognizing the preferred creditor status of AfDB
• The A‐loan must not be less than 25% of the total loan
• AfDB may accept participations having a different maturity profile from the A‐loan
• Front-end fee of 1% of the loan amount
• A- and B-loans must carry the same type of interest rate
• Fees also include an appraisal fee, a syndication fee, a loan administration fee, and an underwriting fee

Guarantees

• AfDB can provide partial credit and partial risk guarantees
• Guarantees may be in USD, EUR, JPY, and ZAR; lending in other currencies may be possible
• Tenors of up to 20 years (for sovereign-guaranteed loans) or up to 15 years (for non-sovereign-guaranteed loans), with up to 5-year grace periods
• For structures with bullet repayments, the maximum period is limited to 15 years and an average life of 10 years
• Fees include a stand-by fee, a guarantee fee, and other fees

Other products

• The bank may invest in equities either directly or indirectly in private sector companies
• AfDB offers risk management products to its clients in order to enable them to hedge their exposure to market risks including interest rate, currency exchange, and commodity price risks
• The bank also has a trade finance initiative and provides technical assistance, and compiles and publishes economic statistics of regional member countries