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African Development Bank Group
Loan Accounting Division
Financial Control Department
Version : 2011
D e b t S e r v i c i n g H a n d b o o kD e b t S e r v i c i n g H a n d b o o k
B.P. 323 - 1002 Tunis Belvédère TunisiaTel.: (+216) 71 102 955Fax: (+216) 71 194 477Email: [email protected]: www.afdb.org
Loan Accounting Division
Financial Control Department
Version February 2011
Deb t Se r v i c i ng Handbook
African Development Bank Group
2
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
The Financial Controller’s Department is responsible
for administering the accounts of borrowers of the
African Development Bank Group1 (the Bank Group
or the ADB Group). The Loan Accounting Division
is responsible for billing and loan recovery matters,
and provides borrowers with services related to
loan accounting.
This Handbook is a resource intended primarily for
borrowers of the Bank Group, to assist in their
understanding of Bank Group policies and
procedures regarding the servicing of their debts
to the Bank Group.
This version supersedes all previous versions. It is
subject to periodic updates, to reflect changes in
the Bank Group’s product offerings and in the
related loan accounting, billing and recovery
procedures.
This Handbook is also available electronically on
the Bank Group website (http://www.afdb.org).
Foreword
1 The terms “The Bank Group” or “the ADB Group” refer to the African Development Bank (ADB), the African Development Fund (ADF) and the NigeriaTrust Fund (NTF). Where a discussion pertains specifically to one of these institutions, the institution is explicitly named.
3
ADBADFB.P.EUREURIBORGBPJIBARJPYLIBORMFIXMVLRNSGLNTFSVLRSFLRSFIXSGLUAUSD
African Development BankAfrican Development FundBasis pointEuroEuro Inter-Bank Offered RatesGreat Britain PoundJohannesburg Inter-Bank Offered RatesJapanese YenLondon Inter-Bank Offered RatesMulti-currency Fixed RateMulti-currency Variable RateNon sovereign guaranteed loansNigeria Trust FundSingle Currency Variable RateSingle Currency Floating RateSingle Currency Fixed RateSovereign guaranteed loansUnit of AccountUnited States Dollar
Acronyms
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
4
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
1. Introduction
1.1. The African Development Bank Group
1.2. Legal framework
2. Terms of Current ADB Lending Products
2.1 Loan maturity
2.2 Grace period
2.3 Currencies
2.4 Lending rate terms
2.5 Fees and commissions
2.6 Principal repayment terms
3. Terms of ADB Discontinued Lending Products
3.1 Variable rate loans
3.2 Multicurrency fixed rate loans
4. Terms of ADF Loans
4.1 ADF loans maturity, grace period and principal repayment terms
4.2 Currencies
4.3 Lending terms
5. Terms of NTF Loans
5.1 Maturity and grace period
5.2 Currencies
5.3 Lending terms
6. Debt Relief Initiatives
6.1 Highly Indebted Poor Countries (HIPC)
6.2 Multilateral Debt Relief Initiative
7. Loan Identification Number
7.1 Source of financing codes
Contents
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7.2 Identification of financial product type
7.3 Loan numbering scheme
8. Billing Procedures
8.1 Methodology for calculating bills
8.2 Content of bill package and other available reports
9. Recovery Procedures
9.1 Order of payment application
9.2 Payments falling due on non-working days
9.3 Treatment of single currency payment
9.4 Treatment of shortfalls and excess payment
9.5 Incoming Payments Report
10. Arrears Management and Sanctions
10.1 Definition of arrears
10.2 Sanction policy of the Bank
10.3 Exemptions from sanctions
11. Cancellation Procedures
12. Prepayment Procedures
13. Reports Available to Borrowers
Bibliography
Annexes
Annex I: Statement of confirmed disbursements
Annex II: Loan status report
Annex III: Billing statements
Annex IV: Repayment statement
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
1.1. The African Development Bank Group
The primary objective of the African Development
Bank Group is to contribute to the sustainable
economic development and social progress of its
regional members, individually and jointly. This
objective is met by financing a broad range of
development projects and programs, primarily
through: (i) public sector loans (including policy-
based loans), private sector loans and equity
investments; and (ii) providing technical assistance
for institutional support projects and programs.
The African Development Bank Group comprises
the African Development Bank, the African
Development Fund and the Nigeria Trust Fund,
which are further described below.
Established in 1964, the AFRICAN DEVELOPMENT
BANK is a regional multilateral development bank owned
and supported by its current 77 member countries,
including 53 African and 24 non-African countries. As
members, the countries contribute to the capital of the
ADB. In addition to such contributed capital, the other
sources of funding include the following:
• Borrowings on the international capital
markets;
• Repayments from loans;
• Retained Earnings.
The AFRICAN DEVELOPMENT FUND is the main
concessionary window of the Bank Group. The
current membership of the ADF comprises 24
non-African State Participants, South Africa and
the African Development Bank. ADF provides
assistance to developing countries with low per
capita income through loans extended on more
favorable terms than the ADB as well as through
grants. The ADF is funded primarily through
periodic replenishments by the State Participants.
Replenishments to the Fund are usually made on
a three-year basis, unless State participants
decide otherwise.
The NIGERIA TRUST FUND, the third window in
the ADB Group, was established by the
government of Nigeria, with the objective of
providing development assistance to developing
countries with low per capita income through
loans extended on more concessionary terms
than the ADB. Although the ADF and NTF are
legally and financially distinct from the ADB, they
share the same staff, and their projects are subject
to the same standards as those of the ADB.
1. Introduction
7
1.2. Legal framework
1.2.1. General conditions
The standard conditions governing ADB and ADF
financial products are contained in the institutions’
General Conditions Applicable to Loan, Guarantee
and Grant Agreements and in the respective
operational guidelines. Similarly, conditions
governing NTF loans are contained in the NTF
operational guidelines. General Conditions are an
integral part of the loan agreements and cover
the following:
• Interest, commitment charges and other
charges computation
• Application of payments
• Repayment and prepayment provisions
• Currency provisions, including valuation of
currencies
• Withdrawal of proceeds
• Cancellation and suspension
• Acceleration to maturity
• Termination
• Various other legal provisions
1.2.2. Legal agreements
The main legal document for a financial lending
product offered by the Bank is an agreement
signed between the borrower and the Bank,
which sets out the terms and conditions of the
contract. When the Bank lends directly to a party
other than a member country, the Bank may also
enter into a guarantee agreement with the relevant
member country.
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Figure 1: African Development Bank Group
The African Development Bank
(ADB)
The African Development Fund
(ADF)
The Nigeria TrustFund(NTF)
Commercial Terms Concessional Terms
8
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
The Bank’s range of products has evolved and
increased over the last decade, introducing
more flexibility and choice for the clients it serves.
These changes were driven by the need for the
Bank to be more responsive to its borrowers’ varied
and evolving needs. Changes include the
introduction of risk management products, allowing
clients to hedge against financial risks associated
with their ADB loans, and equity investments.
Guarantees and loan syndications were also added
to the menu allowing the Bank to play a catalytic
role in mobilizing capital to projects in the private
sector.
The Bank’s standard loans are categorized either
as Sovereign Guaranteed Loans (SGL) or
Non‐Sovereign Guaranteed Loans (NSGL). SGLs
are loans made to an eligible regional member
country (RMC) or to a public sector enterprise
supported by the full guarantee of the RMC in
whose territory the borrower is domiciled. NSGLs
are loans made either to public sector enterprises
without the existence of a sovereign guarantee or
to private sector enterprises.
This chapter presents the current ADB lending
terms.
2.1. Loan maturity
The African Development Bank provides long‐term
financing to its borrowers. SGLs have final maturities
of up to 20 years including a grace period of up to
5 years. NSGLs have final maturities of up to 15
years inclusive of the grace period.
2.2. Grace period
Grace periods are dependent on the specific
characteristics of the project and the time required
for its implementation but generally they should not
exceed 5 years. In exceptional cases, grace periods
longer than 5 years may be considered subject to
satisfactory justification of project requirements by
the borrower. The grace period starts from the date
of signature of the loan agreement.
2.3. Currencies
2.3.1. Currency of commitment
The Bank currently offers loans in US Dollars, Euro,
Japanese Yen and South African Rand (ZAR). The
Bank may also consider lending in other currencies
in which it funds itself efficiently and for which there
is sufficient demand.
2.3.2. Currency of disbursement
The Bank may execute disbursements in any
payment currency requested by the borrower. The
requested currency is purchased using the
exchange rate (spot rate) quoted by the selling bank
and the borrower’s obligation is recorded in the loan
currency. This currency purchase on behalf of the
borrower is free of charges.
2. Terms of current ADB lending products
2 The latest list of lending products is available on the Bank website: http://www.afdb.org/en/documents/financial-information/financial-products/
9
2.3.3. Currency of repayment
The loan principal, interest and any other fees are
payable in the currency of commitment. However,
currency conversion options are available and allow
borrowers to settle amounts due in any of the
following currencies: EUR, GBP, JPY and USD. The
borrower retains the exchange rate risk. Accordingly,
any shortfall or excess resulting from the application
of the single currency payment is for the borrower’s
account.
2.3.4. Local currency products
The Bank has broadened its scope to
accommodate the possibility of lending in local
currencies, and has developed a framework to
guide the provision of loans in Regional Member
Country (RMC) currencies.
2.4. Lending rate terms
2.4.1. Enhanced variable spread loans for sovereign guaranteed entities
In December 2009, the Bank introduced for
sovereign guaranteed entities the Enhanced Variable
Spread Loan (EVSL). Under the previously proposed
variable spread loan, the pricing comprised of the
Bank’s cost of borrowing and a lending spread (base
rate + funding margin + lending spread). Two
alternatives were offered to clients at loan approval:
they could either select a floating or fixed base rate.
With the new enhanced variable spread loan, the
pricing remains the same but offers a floating base
rate with a free embedded option to fix the base
rate on demand. This implies that over the life of
the loan, borrowers have the flexibility to fix the
interest rate on the cumulative disbursed and
outstanding amount at any time.
As presented in Table 1 below, the EVSL lending
rate has three components: a floating base rate that
can be fixed at borrower’s request; a funding margin;
and a lending spread.
The floating base rate is determined for each loan
currency with a reset frequency based on the Bank’s
selected reference interest rate in each market. The
Bank’s standard floating base rates are the 6‐month
Libor for USD and JPY; the 6‐month Euribor for
EUR; and the 3‐month Jibar for ZAR. Except for
the ZAR which resets quarterly on February 1st, May
1st , August 1st and November 1st , the other floating
rates reset semi-annually on February 1st and
August 1st.
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Table 1: EVSL Lending Rate
a) Base Rate
Floating rate (6m Libor/Euribor, 3m Jibar)Can be fixed free of charge at the borrower’s request
b) Funding MarginBank’s cost of borrowing relative toLibor, Euribor, Jibar with semi-annual resets
c) Lending Spread Between 40 and 60 b.p.
d) Lending Rate (d)=(a)+(b)+(c)
10
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
If the borrower decides to fix the floating rate on
the cumulative disbursed and outstanding tranche,
the fixed base rate for that tranche is computed by
the Bank as the inter‐bank swap market rate
corresponding to the principal amortization
schedule. The Bank reserves the right to delay fixing
if the size of the tranche/disbursement is not large
enough to allow for a cost-effective fixing
transaction. In such cases, fixing would occur as
soon as an adequate disbursed amount, as
determined by the Bank, has been accumulated to
warrant the transaction and such amount should
be set out in the loan agreement.
The funding margin is currency specific. It is
calculated twice a year and applicable on February
1st and August 1st. It is the semester weighted
average of the spread between Libor/Euribor/Jibar
and the cost of the debt allocated to fund the single
currency floating rate loans portfolio.
The lending spread is subject to periodic review,
with changes applied prospectively only. The lending
spread has evolved overtime within a range of 40
to 60 basis points. Currently, sovereign-guaranteed
loans approved on or after January 1, 2011 carry
a lending spread of 60 basis points.
2.4.2. Fixed spread loan for sovereign guaranteed entities
Fixed Spread loans (FSL) were introduced in 2005
and offered borrowers a lending rate consisting of
a floating or fixed base rate and a fixed lending
spread that remains unchanged throughout the life
of the loan.
In January 2009, the Bank temporarily suspended,
for sovereign-guaranteed entities, the Fixed Spread
Loan product for new commitments by the
introduction of a funding margin. The objective of
this amendment was to ensure a full pass through
of the Bank’s borrowing costs to its clients, thereby
safeguarding its financial integrity and its ability to
remain a stable source of long term funding.
2.4.3. Fixed spread loan for non-sovereign guaranteed entities
Fixed Spread Loans (FSL) offer borrowers a lending
rate consisting of a floating rate (Libor/Euribor/Jibar)
and a specific fixed spread corresponding to the
project’s credit risk. The FSL includes the option to
fix the interest rate on demand while maintaining
the spread constant over the life of the loan.
Table 2: FSL Lending Rate for Sovereign-Guaranteed Entities
a) Base Rate
Floating rate (6m Libor/Euribor, 3m Jibar)
Fixed (specificinter-bank swapmarket rate)
b)Lending Spread
Bank’s standard lending spread
c) Lending Rate
(c)= (a)+(b)
11
2.5. Fees and commissions
2.5.1. Commitment fee
Commitment fees are intended to compensate the
Bank for the cost of giving borrowers the option to
draw down the funds during a predetermined period.
The commitment fee ranges from 0% to 1% per
annum for SGLs and for NSGLs it could be higher.
It is calculated on undisbursed loan balances and
starts accruing no later than 60 days after loan
signature.
The commitment fee has been removed since May
2005 for new commitments approved in favor of
sovereign-guaranteed entities. From January 1,
2011, the commitment fee is reintroduced for fast
disbursing policy-based loans which register
slippage in disbursements.
2.5.2. Fees specific to Non-Sovereign
Guaranteed loans
Appraisal fee
Appraisal fees partially or fully cover costs incurred
by the Bank in appraising new project proposals
and are payable even in cases where the project is
not approved.
Appraisal fees are payable no later than at the
signature of the loan agreement, or as agreed
among co-financiers in co‐financed projects.
Front end fee
The front‐end fee is designed to partially
compensate the Bank for the costs associated with
processing a loan request and preparation of the
documentation for loan approval. It is charged only
when the project is approved and it is not
reimbursed if the project is subsequently cancelled.
The front‐end fee is 1% of the loan amount. It is
payable before or at loan signature, however when
market and/or conditions warrant, the front end fee
may be paid up to thirty (30) days after loan
signature or as agreed among co-financiers in
co‐financed projects.
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Table 3: FSL Lending Rate for Non-Sovereign Guaranteed Entities
a) BaseRate
Floating rate (6m Libor/Euribor, 3m Jibar)
Fixed (specificinter-bank swapmarket rate)
b)Lending Spread
Based on specific project risk
c) Lending Rate
(c)= (a)+(b)
12
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Arrangement or Syndication fee
The arrangement or syndication fee is levied to pay
for the work and expenses of the arranger of the
syndication. This flat fee is paid by the borrower on
or before the date of signature of the loan
agreement. The level of this fee depends on the
complexity of the transaction in line with prevailing
market practices.
Loan administration fee
The loan administration fee is a flat fee levied to pay
for the work of the syndication Agent. The level and
payment frequency should be in line with prevailing
market practices.
Underwriting fee
Where ADB underwrites a portion of the B‐loan,
the borrower shall pay an underwriting fee to ADB.
The calculation details and payment date of this flat
fee should be stated in the loan agreement.
2.5.3. Fees specific to guarantees
Standby-fee
The standby-fee is charged on the undisbursed
portion of the underlying loan. This fee is in the
range of 0% to 1%.
Guarantee fee
This fee is similar to the lending spread on a Bank
loan. The guarantee fee comprises of the lending
spread that would have been charged if the Bank
had made a direct loan and a risk premium. The
risk premium reflects the risks associated with
particular guarantee structures.
2.6. Principal repayment terms
The Bank’s principal repayment terms provide for
the payment of equal installments of principal, after
the expiration of the grace period. Other principal
repayment terms such as bullet repayment and
step‐up or step‐down amortization of principal may
be considered subject to satisfactory justification
of project requirements by the borrower.
13
This section describes the terms and conditionsrelating to outstanding balances on ADB loan
products that have been withdrawn from the ADBmenu for new loan commitments.
3.1. Variable rate loans
Variable rate loans are cost-pass through assets,whose interest rate periodically adjusts in line withthe average cost of a designated pool of theBank’s borrowings.
3. Terms of ADB discontinued lending products
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
=Lending Rate
In the past, the Bank offered to its clients the multi-currency variable rate loan and substituted it in Oc-tober 1997 by the single currency variable rate loanto better respond to borrowers’ demand.
3.1.1. Multicurrency variable rate loans
In the past and until September 1997, the Bank of-fered multicurrency variable rate loans denomina-ted in UA. These were disbursed in any currency
needed for the project expenditure with the borro-wer’s obligation being denominated in the currencyused by the Bank to meet the request. Borrowersrepay the loans in the currencies disbursed andoutstanding and, consequently, bear the foreigncurrency exchange risks of these currencies.
The base interest rate on multi-currency variablerate loans is reset every January 1st and July 1st
based on the multi-currency weighted averagecost of the Bank’s designated single-currencypool-based loans. A single rate is applicable to allcurrencies outstanding on a multicurrency loan.
3.1.2. Converted variable rate loans
In 1997 and in response to borrower’s demand forcurrency choice in respect of their existing multi-currency pool-based variable rate loans, the Bankoffered a one-time conversion of these loans to asingle eligible currency of the borrower’s choice.For such loans, although disbursements may bemade in any currency needed for project expendi-tures, the borrower’s obligation is denominated inthe currency selected at the time of conversion.
The base interest rate on the converted variablerate loans consists of a currency specific variablebase rate and a fixed lending spread. The variablebase rate is revised bi-annually on January 1st andJuly 1st based on the weighted average cost in the
+
Figure 2: Variable Rate Loan Lending Rate
Cost of Fund
Fixe Lending Spread
14
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
preceding semester of a designated single-cur-rency pool of the Bank’s borrowings.
3.1.3. Single currency variable rate loans
Effective October 1, 1997, the Bank Board of Di-rectors approved the introduction of single cur-rency loans in USD, JPY and EUR in response toits borrowers’ needs. The introduction of the ZARas loan currency was approved in 1998.
Loan disbursements can be transacted in anycurrency needed for project expenditures with theborrower’s obligation denominated in the cur-rency of loan commitment.
The base interest rate on the single currency va-riable rate loans is reset every January 1st and July1st based on the weighted average cost in the pre-
ceding semester of a designated single-currencypool of the Bank’s borrowings.
The single currency variable rate loan sufferedfrom the competition with other loan products thatprovide similar loan profiles at more competitivelevels. As a result and given the decreasing de-mand for this product, the Bank decided in De-cember 2009 to withdraw it from the menu ofinstruments offered to clients.
3.2. Multicurrency fixed rate loans
The Bank offered prior to July 1, 1990, the multi-currency fixed rate product. The rate is fixed forthe life of the loan at the time of approval and le-vied on the disbursed and outstanding currencybalances on the loan. A single rate is applicableto all currencies outstanding on the loan.
15
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
4. Terms of ADF loans
The African Development Fund (ADF) is the Bank
Group’s main concessional lending window.
ADF extends funds to the low income countries on
a concessional basis.
4.1. ADF loans maturity, grace period and principal repayment terms
ADF loans have final maturity of up to 50 years
including a 10-year grace period. For project loans,
principal amounts are amortized at an annual rate
of 1% of the cumulative disbursed amount for the
10 years following the grace period and 3% for the
remaining 30 years.
Where disbursements occur after the expiration of the
grace period, the annual amortization rate is adjusted
to ensure that 90% of the cumulative disbursed amount
of the loan is repaid over the last remaining 30 years.
The required adjustments are illustrated in Table 5.
Lines of credit extended by the Fund have final
maturity of up to 20 years including a 5-year grace
period and are repayable in equal installments.
Table 4: Example of amortization schedule
Life of the loan Amounts in UA
End of grace period - Cumulative disbursements 10,000 14,000 21,000 30,000
Year 11-20 (0.5% of cumulative disbursements per semester) 50 70 105 150
Year 21-50 (1.5% of cumulative disbursements per semester) 150 210 315 450
16
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Table 5: Adjusted amortization – Disbursement after the grace period
Remaininginstallments
New disbursements
Cumulative disbursements
Repayments % of cumulativedisbursements
Cumulativerepayments
Outstandingbalance
Installment 1 20 10,000 50 0.50% 50 9,950Installment 2 19 10,000 50 0.50% 100 9,900Disbursement 4,000 14,000 100 13,900Installment 3 18 14,000 72 0.52% 172 13,828Installment 4 17 14,000 72 0.52% 244 13,756Installment 5 16 14,000 72 0.52% 317 13,683Installment 6 15 14,000 72 0.52% 389 13,611Installment 7 14 14,000 72 0.52% 461 13,539Installment 8 13 14,000 72 0.52% 533 13,467Disbursement 7,000 21,000 533 20,467Installment 9 12 21,000 131 0.62% 664 20,336Installment 10 11 21,000 131 0.62% 794 20,206Installment 11 10 21,000 131 0.62% 925 20,075Installment 12 9 21,000 131 0.62% 1,056 19,944Installment 13 8 21,000 131 0.62% 1,186 19,814Installment 14 7 21,000 131 0.62% 1,317 19,683Installment 15 6 21,000 131 0.62% 1,447 19,553Installment 16 5 21,000 131 0.62% 1,578 19,422Installment 17 4 21,000 131 0.62% 1,708 19,292Installment 18 3 21,000 131 0.62% 1,839 19,161Installment 19 2 21,000 131 0.62% 1,969 19,031Installment 20 1 21,000 131 0.62% 2,100 18,900Installment 21 60 21,000 315 1.50% 2,415 18,585Installment 22 59 21,000 315 1.50% 2,730 18,270Installment 23 58 21,000 315 1.50% 3,045 17,955Installment 24 57 21,000 315 1.50% 3,360 17,640Installment 25 56 21,000 315 1.50% 3,675 17,325Installment 26 55 21,000 315 1.50% 3,990 17,010Installment 27 54 21,000 315 1.50% 4,305 16,695Installment 28 53 21,000 315 1.50% 4,620 16,380Installment 29 52 21,000 315 1.50% 4,935 16,065Installment 30 51 21,000 315 1.50% 5,250 15,750Disbursement 9,000 30,000 5,250 24,750Installment 31 50 30,000 495 1.65% 5,745 24,255
17
disbursement currency chosen at negotiation or
in any currency used to purchase the payment
currency. This currency purchase on behalf of the
borrower is free of charges.
As soon as a disbursement is made, the
equivalent of the currency amount disbursed in
UA is debited to the loan account resulting in:
(i) a reduction in the undisbursed balance in
UA and
(ii) an increase in the outstanding currency
balance on the loan in the currency
selected by the borrower or in the currency
used by the Bank to meet the
disbursement request.
4.2. Currencies
4.2.1. Currency of commitment
ADF loans are denominated in Units of Account
(UA). For loans contracted after June 23, 2005,
borrowers have the option to select the currency
of disbursement (EUR, USD, JPY or GBP) at loan
signature.
4.2.2. Currency of disbursement
The Bank may execute disbursements in any
payment currency requested by the borrower.
The Bank purchases the requested currency using
the exchange rate (spot rate) quoted by the selling
bank and records the borrower’s obligation in the
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
18
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Figure 3: Example of disbursement when no disbursement currency is selected and the Bank has USD liquidity3
1. Ministry of Finance requests a payment of
USD 1million
2. ADB pays tothe BeneficiaryUSD 1 million
5. ADB sends a bill in USD to Ministry of Finance
3. Loan Undisbursed Balance
decreases by UA 640,977.71UA/USD=1.5601
4. The Outstan-ding Balance increases byUSD 1 million
3 Exchange rates used are for illustrative purposes only. The rate for actual transactions would be the spot rate on the date of the transaction.
19
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Figure 4: Disbursements for UA denominated loans when EUR is selected as disbursement currency4
1. Ministry of Finance requests a payment of
USD 1million
2. ADB sellsEUR 731,368.39
at EUR/USD=1.3673
to buyUSD 1million
3. ADB pays tothe BeneficiaryUSD 1 million
4. LoanUndisbursedBalance
decreases byUA 640,977.71UA/EUR=1.1410
5. The OutstandingBalance
increases by EUR731,368.39
6. ADB sends abill in EUR toMinistry of Finance
4 Exchange rates used are for illustrative purposes only. The rate for actual transactions would be the spot rate on the date of the transaction.
Figure 5: Lending terms under ADF window
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
4.2.3. Currency of repayment
Loan principal repayment and service charges are
billed and payable in the actual currencies
disbursed and outstanding. The commitment fee
is payable in USD. ADF provides currency
conversion options which allow borrowers to settle
amounts due in a single currency payment
denominated in any of the following currencies:
EUR, GBP, JPY and USD. The borrower’s
obligation remains in the loan currency and any
shortfall or excess resulting from the application
of the single currency payment is for the borrower’s
account.
4.3. Lending terms
No interest is charged on ADF loans. Only a service
charge of 75 basis points per annum is levied on the
disbursed and outstanding currency loan balance.
Loans approved after April 1, 1996 are subject to
a commitment charge of 0.5% per annum on the
undisbursed balance of the loan. Commitment
charges begin to accrue 120 days after the
signature of the loan agreement.
The table below summarizes the lending terms
under ADF window.
Maturity andPrincipal repayment
termsCurrency Grace Period Service Charge Commitment fee
Maturity Up to 50 years
Principal repayment:
• 1% of the
principal per
annum from the
11th to 20th year
• 3% of the
principal per
annum from the
21th to 50th year
Denominated inUA with the optionto select disbursementcurrency at loansignature (EUR,USD, JPY, or GBP)
Up to 10 years
0.75% per annumon disbursementand outstandingamount
0.50% per annumon undisbursedamount accruing120 days, startingat loan signaturedate
21
5.1. Maturity and grace period
NTF loans have final maturity of up to 27 years
including a grace period of up to 7 years.
5.2. Currencies
The Nigeria Trust Fund (NTF) extends loans
denominated in UA. Although loan disbursements may
be made in any payment currency requested, the
borrower’s obligation are denominated in US dollars.
5.3. Lending terms
Lending terms applicable to NTF loans were
revised on May 15, 2008.
For loans approved before May 15, 2008:
• The interest rate is fixed within a range of 2-
4% per annum, levied on the disbursed and
outstanding loan balance and payable in US
dollar.
• A commitment charge of 0.75% per annum
is levied on the undisbursed portion of each
signed loan, commencing 120 days after the
signature of the loan agreement.
For loans approved after May 15, 2008:
• No interest is charged. Only a service charge
of 75 basis points per annum is levied on the
disbursed and outstanding loan balance and
payable in US dollar.
• A commitment charge of 0.5% per annum
is levied on the undisbursed portion of each
signed loan, commencing 120 days after the
signature of the loan agreement.
NTF resources might be used to finance non-
sovereign guaranteed loans. Lending terms for
those loans would be the same as the ADB would
apply taking into consideration the Bank
Guidelines as well as the risk analysis of the
project.
5. Terms of NTF loans
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Figure 6: Lending terms under NTF window
Maturity Currency Grace Period Lending rate Commitment fee
Up to 27 yearsDenominated inUA but disbursedin USD Up to 7 years
Loans approvedbefore 15 May
2008: Interest of 2% -4% per annum
Loans approvedafter 15 May 2008: Service charge of0.75% per annum
Loans approvedbefore 15 May
2008: 0.75% per annumon undisbursedamount accruing120 days, startingat loan signature
date
Loans approvedafter 15 May 2008: 0.50% per annumon undisbursedamount accruing120 days, startingat loan signature
date
Principal Repayment: Linear amortization
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
6.1. Highly Indebted Poor Countries (HIPC)
6.1.1. Overview
Created in September 1996, the Initiative for
Highly Indebted Poor Countries (HIPC) was
designed to reduce eligible countries’ debt burdens
to sustainable levels, subject to satisfactory policy
performance. The countries targeted under the
initiative were the poorest, most heavily indebted
countries that pursued certain programs of
adjustment and reforms.
The initiative was enhanced in 1999 as an outcome
of a comprehensive review by the International
Monetary Fund (IMF) and other institutions, including
public consultations. The Initiative’s debt-burden
thresholds were adjusted downward, which enabled
a broader group of countries to qualify for larger
volumes of debt relief.
HIPC countries, depending on their progress with
regard to certain macroeconomic criteria, fall in one
of the following statuses or categories5:
• Completion Point:
Countries reach completion point if they maintain
macroeconomic stability under a Poverty Reduction
and Growth Facility supported programs, carry out
key structural and social reforms and implement a
Poverty Reduction Strategy satisfactorily for one
year. Once a country reaches completion point, it
is entitled to full irrevocable debt relief.
• Decision Point:
In order to reach decision point, a country should
have a track record of macroeconomic stability,
have prepared an Interim Poverty Reduction
Strategy Paper, and cleared any outstanding
arrears. At decision point, countries begin to receive
interim HIPC debt relief on a provisional basis.
• Pre-Decision Point:
Countries at this stage have been assessed to meet
the income and indebtedness criteria at end-2004
and wish to avail themselves of the HIPC initiative.
6.1.2. Implementation modalities of HIPC
HIPC Debt Relief is delivered starting from decision
point and is applicable to the country’s Bank Group
portfolio on a pay-as-you-go basis as per the
schedule approved by the Board of Directors in the
decision point document.
At each due date, the debt service obligation of the
country is reduced by the amount of the relevant
HIPC allocation according to the HIPC schedule
approved by the Board.
The attainment of completion point status qualifies
a country for cancellation of its ADF eligible debt
under the Multilateral Debt Relief Initiative (MDRI).
HIPC allocation is discontinued for the ADF portfolio
while it continues to be delivered for the ADB and
6. Debt relief initiatives
5 HIPC statuses of Regional Member Countries are available in the Bank Group Annual Report: http://www.afdb.org/en/documents/publications/an-nual-report
NTF portfolios similarly to the allocation at decision
point.
6.2. Multilateral Debt Relief Initiative
6.2.1. Overview
In 2005, the G8 proposed that the African
Development Fund (ADF), the international
Development Association (IDA) and the International
Monetary Fund (IMF) cancel 100% of the eligible
debt of countries at completion date under the
enhanced HIPC initiative. This Multilateral Debt Relief
Initiative (MDRI) is aimed to further reduce the debts
of HIPCs and provide additional resources to help
them meet the Millennium Development Goals.
On April 19, 2006, the Boards of Directors of the
African Development Bank and African
Development Fund approved the ADF’s participation
in the MDRI. Accordingly, effective January 1, 2006,
Debt Relief under MDRI is to be provided by the
ADF once a country reaches the HIPC completion
point. ADB and NTF loans are not affected by the
initiative.
6.2.2. Modalities of MDRI implementation
Debt eligible for cancellation
The MDRI debt cancellation is applicable to the
outstanding balances, as of the implementation
date, of ADF loans which were disbursed and
outstanding as of December 31, 2004 (the cut-off
date). The MDRI implementation date is September
1, 2006 for countries that had reached completion
point prior to that date. For countries that reach
completion point after September 1, 2006, the
implementation date of MDRI is the completion
point date.
When MDRI is implemented for a country, the
delivery of ADF HIPC allocation is discontinued as
the eligible ADF loan balances are written-off.
Amount of Debt cancelled
The amount of individual loan balances that are
written off/cancelled under the MDRI from ADF
books is determined as follows:
• Cumulative disbursements as of the cut-off
date, less
• Related cumulative principal repayments as of
implementation date.
Amounts disbursed after the cut-off date are not
eligible for cancellation under the MDRI and remain
as obligations for the regional member countries
concerned. Consequently, bills for the residual loan
balances relating to such post cut-off
disbursements continue to be issued and are
expected to be fully serviced by the borrowing
member country.
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
ADB Group Loan Identification Number Code
is a 13-digit identification code that captures
the following critical information on the loan: the
source of financing; the underlying financial product
type and a 6-digit serial number. The combination
of these elements creates a unique identification
number for each of ADB Group’s loans.
7.1. Source of financing codes
Sources of financing are represented by 4-digit
codes called company codes. Figure 7 below
presents the main financing sources of the ADB
Bank Group as well as a selection of funds
managed by the Bank.
7. Loan identification number
Figure 7: Company codes representing funding windows
• 5500: Middle Income Countries Fund
• 5600: Africa Water Facility Fund
• 5900: Fragile States Facility
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
7.2. Identification of financial product type
A 3-digit code indicates the specific financing
terms, making each loan directly recognizable,
such as the interest rate (fixed rate, floating rate,
multi-currency variable rate, grants…).
The various product types are listed in Table 6 to
9 below.
Table 6: ADB products codification
Product Type Number Product Type Description
110 Variable Rate
120 Floating Rate
130 Fixed Rate
140 Guarantee
190 Variable Rate Converted
191 Multi-currency Variable Rate
192 Multi-currency Fixed Rate
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Table 7: ADF products codification
Product Type Number Product Type Description
150 ADF Loan
155 Grant
Table 8: NTF products codification
Product Type Number Product Type Description
160 NTF Loan
Table 9: Funds products codification
Product Type Number Product Type Description
155 Grant
Figure 9: Master and Sub Loans codification
Figure 8: Example of loan identification number
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
7.3. Loan numbering scheme
To better follow the loan throughout its life, ADB introduced the system of Master Loans and related Sub Loans.
For loans approved in UA, Master Loans are denominated in UA. Borrower’s obligation is in the currencies
disbursed and outstanding.
2100
• Company Code (4 digits)
• Ex: 2100 for ADF
150
• Product Type (3 digits)
• Ex: 150 for ADF loan
005253
• Serial number (6 digits)
• Unique sequential number
Master Loandenominated in the currency of loan approval and created at approval
Sub Loansdenominated in disbursed currencies and created as required
Note
• The serial number of a Master Loan and the accompanying Sub Loans are unlikely to be in sequence.
• Sub Loans are linked together and to the Master Loan by the Master Loan number
2000190000013UAC
2000190000014JPY
2000190000013
2000190000020USD
2000190000013
2000190000017EUR
2000190000013
29
Table des matières
8.1. Methodology for calculating bills
Sovereign-guaranteed loans are billed semi-
annually on the dates specified in the loan
agreement. The billing statements are prepared two
months before the semi-annual due date and sent
to borrowers six weeks before the due date. They
cover actual loan account movements for the six-
month period ending at the cut-off date, which is
two months before the due date of the bill as
illustrated in the table below.
If a billing period spans more than one interest rate
reset date, the rate is adjusted on the appropriate
date during the billing period in accordance with
rate fixing dates under the terms of the loan
agreement.
The last billing period of a loan is adjusted to cover
8-month period corresponding to the six months
interest period starting from the previous due date
plus the remaining two months.
Non-Sovereign-Guaranteed Loans are billed
according to the financial terms specified in the loan
agreement. Bills are usually issued every three or
six months without a cut-off period.
The other financial products offered by the Bank
are billed according to the applicable legal
documentation.
The main components of a bill are:
• Interest or Service charge based on the
outstanding currency balances over the billing
period;
• Commitment charge based on undisbursed
loan balances;
• Principal installment as specified in the loan
agreement.
8. Billing procedures
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Due DateBilling Period
Cut-off DateApplicable Interest
Rate DateStart End
01-Aug-0801-Dec-07 31-Jan-08
31-May-0801-Aug-07
01-Feb-08 31-May-08 01-Feb-08
01-Feb-0901-Jun-08 31-Jul-08
30-Nov-0801-Feb-08
01-Aug-08 30-Nov-08 01-Aug-08
Table 10: Billing period and cut-off date
Table 11: Calculation of a bill
Component Formula
Interest and Service ChargeDisbursed & Outstanding (x) No. of days (x) Rate
360 or 365 Days*
Commitment ChargeUndisbursed Balance (x) No. of Days (x) Rate
360 or 365 Days*
PrincipalDisbursed & Outstanding - Arrears on Principal**
No of Remaining Installments
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
8.2. Content of bill package and other available reports
8.2.1. Billing package and repayment related information
The billing packages sent to borrowers (See Annex III)
provide the details of the amounts due on the given
due date. They include the following statements:
• Summary of Amounts due (Due by Currency);
• Statement of Single Currency Payment Option;
• Account Statement which provides detailed
computation;
• Summary Loan Ledger that reflects
movements on the loan;
• Amount payable after HIPC relief (if applicable).
8.2.2. Single Currency Payment Option
Borrowers have the option to settle their debt
obligations in a single payment in any of the following
currencies: EUR, GBP, JPY, and USD. When this
option is exercised, the Bank acts as an agent of
the borrower to convert the payment received into
the required currencies. To facilitate the exercise of
this option, the single currency payment option
statement is included in the billing package.
Determination of Amount Payable under the Single Currency Payment Option
After calculating the amounts due in each loan
currency, estimates of the equivalent amounts in
each of the four currencies are determined using
the most recent exchange rates at billing date. The
rates used for conversion include a margin of
between 2 and 5 percent to cover possible
exchange rate fluctuations between billing and
settlement date.
Notwithstanding the above, shortfalls may occur in
the settlement process, due to adverse foreign
exchange rate movements. Such shortfalls remain
the responsibility of the borrower.
An illustrative Single Currency Payment Option
statement is presented at Annex III.
* Or any other interest calculation method specified in the loan agreement** Where principal billed is in arrears otherwise arrears do not feature
31
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9.1. Order of payment application
Debt service payments are applied starting from
the oldest overdue to the most recent dues.
Within these categories, the funds received are
applied in the following order: commitment fees,
interest/service charge and principal.
9.2. Payments falling due on non-working days
If the due date falls on a non-working day for the
receiving bank, although interest and other charges
will continue to accrue on the outstanding loan
balance, no additional costs or penalties are
imposed on the borrower provided that payment
is received on the first working day thereafter. Other
business day conventions might be applied when
specified in the loan agreement.
9.3. Treatment of single currency payment
When a borrower exercises the single currency
payment option, the payment received is applied
first to amounts due in the currency of payment.
Any remaining funds are then used to purchase, on
behalf of the borrower, the other currencies due.
The Bank determines the loan currency equivalent
of the option currency received using market
exchange rates on the value date of the option
currency payment. These amounts are then applied
against bills as if payment had been received directly
from the borrower in the actual currencies due. Any
surplus or shortfalls arising from such transactions
are for the borrower’s account.
9.4. Treatment of shortfalls and excess payment
Shortfalls
A shortfall may arise due to either one of the
following reasons:
(i) the borrower exercises the single currency
payment option and makes payment in
accordance with the estimated amount
provided by the Bank at the time of billing, but
because of exchange rate fluctuations the
single currency payment is not sufficient to
purchase all currencies payable or
(ii) the borrower does not exercise the single
currency option but the amount received from
the borrower is not sufficient to cover the
amount billed.
Shortfalls are advised to borrowers and are due
immediately in case (ii). In case (i), payment is due
no later than the next due date. Shortfalls are
reported as arrears and continue to accrue
applicable interest when they relate to principal
amounts.
The Bank’s sanction policy provides for the
exemption from sanctions when the shortfall is due
to currency purchase transactions related to the
9. Recovery procedures
single currency payment option or when the unpaid
amount is less than UA 25,000.
Excess Payments
The Bank may hold excess funds for the borrower’s
account as a result of excess payments or following
currency purchases where foreign exchange rate
movements have been favorable to the borrower.
With the borrower’s consent, an excess payment
may be treated as follows:
• The excess may be held for the borrower’s
account and applied against the next bills or
capital subscriptions or against any other
obligation of the borrower.
• The excess may be refunded to the borrower.
9.5. Incoming Payments Report
The Application of Incoming Payments Report
(See Annex IV) is sent to borrowers following
receipt and application of their payments. This
report details the amounts received and how
they have been applied to charges and principal
for various loans. It also provides the amount of
excess payment that may arise.
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
10.1. Definition of arrears
Aloan is considered to be in arrears if payment
due is not received on the due date. If the
amount due remains fully or partially unpaid thirty
days after the due date, the Bank shall apply
sanctions to the borrower, in accordance with the
Sanctions Policy summarized below.
The Bank's financial ability to continue to promote
development depends on prompt servicing of
loans made by the Bank Group. Arrears may
ultimately impair the Bank's credit standing and
its ability to access resources for lending to
member countries on favorable terms. For these
reasons, the bank insists on settlement of invoices
when they fall due.
10.2. Sanction policy of the Bank
The policy relating to the recovery of arrears on
loans prescribes the rules and sanctions that are
applicable to borrowers and/or Guarantors in
default. The table 12 summarizes the sanctions
policy of the Bank Group.
Sanctions also automatically apply to a guarantor
fifteen (15) days from the date of application to the
borrower.
10.3. Exemptions from sanctions
Notwithstanding the above, sanctions may be wai-ved for a borrower in arrears under any of the fol-lowing circumstances:
• Technical assistance services financed from ADFresources allocated to the Technical AssistanceFund (TAF), particularly for pre-investmentstudies, institutional strengthening…;
• Training costs and scholarships;• Multinational projects and programs that shall
face only one sanction: prohibition from signingany new loan and/or guarantee agreements;
• Works and services concluded, supplies shippedor delivered prior to the date of application ofthe sanction involving suspension ofdisbursements. However, all relevantdisbursement requests must reach the BankGroup within a maximum of sixty days from thedate of application of the sanctions;
• Expenses payable to ADB/ADF with bilateralresources;
• Arrears whose cumulative amount does notexceed UA 25,000. The borrower is still howeverrequired to make immediate payment;
• Inadequate purchase of foreign exchange,incomplete transactions for foreign exchangepurchase, a billing error, amounts underinvestigation and payments returned bycommercial banks to borrowers.
10. Arrears management and sanctions
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Table 12: Main Bank Group Sanctions
Trigger Sanction
Arrears of Over 30 days
Prohibition of the Borrower and/or Guarantor from signing any new Loanand/or Guarantee Agreement with the Bank Group.
Suspension of disbursements in respect of all Bank Group loans grantedto the Borrower and/or Guarantor.
Suspension of the granting of any new loans by the Bank Group to the
Borrower and/or Guarantor.
Application of the Cross-default sanction clause by virtue of which ADB
Group shall suspend in whole or in part the right of the Borrower or the Gua-
rantor to disbursement of Loan Funds because of a failure by the Borrower
or the Guarantor to perform any of its obligations under any Loan Agreement
or Guarantee Agreement concluded with ADB/ADF/NTF.
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
The borrower has unilateral right, by notice to the
Bank, to cancel without penalty any amount on
the loan not yet disbursed or the entire loan whether
or not the loan agreement has been signed except for
amounts for which the Bank Group has entered into a
special commitment. Cancellation by the borrower
takes effect at the latest sixty (60) days from the date
of receipt by the Bank of the cancellation request.
Similarly the Bank may, upon expiration of a three-
month notice period, cancel an amount of the loan.
The Bank may initiate a loan cancellation for any of the
following reasons:
• Renegotiated loan terms;
• Loan not signed after a period of 180 days from
approval date;
• No disbursements for over 2 years;
• Closing date expired;
• Project completed;
• Undisbursed balance below minimum threshold;
• Continuing suspension of disbursements;
• Mis-procurement;
For non-sovereign guaranteed operations, the criteria
for loans cancellation are defined in the loan agreement.
11. Cancellation procedures
Figure 10: Cancellation initiation and effective date
36
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Article III of the General Conditions Applicable to
Loan and Guarantee Agreements provides for the
pre-payment of loans in advance of maturity.
Borrowers may prepay their loan at the expiration
of the prepayment notice period as provided for
in the loan agreement. In general, sovereign
guaranteed loans are subjected to a forty-five
days prepayment notice. Upon receipt of the
prepayment notice from the borrower, the Bank
calculates the amounts in principal and charges
that are due on the effective date of pre-payment.
Any undisbursed loan balance on the loan being
prepaid will be cancelled on the effective date of
prepayment. Other prepayment notice periods
may be specified in non-sovereign guaranteed
loan agreements.
A prepayment penalty that reflects the Bank’s
cost of re-deploying prepaid funds may be
applicable as provided for in the loan agreement.
12. Prepayment procedures
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
The Bank provides or makes available to
borrowers a set of reports for debt management
purposes. To facilitate and ensure the continuity of
such reporting, borrowers should promptly notify
the Bank of changes in their contact details.
In addition to the billing packages and payment
application reports, the Bank Group sends the
following reports to borrowers on a regular basis:
Statement of Confirmed Disbursements
The Statement of Confirmed Disbursements (See
Annex I) lists all disbursements made during the
month or any specified period. It also shows the
total disbursed in the loan currency, the undisbursed
balance on the loan as at the end of the specified
period and amounts cancelled, if any.
Loan Status Reports
The loan status reports (See Annex II) contain
information on the movements in borrowers’ loan
accounts as at a given date or for a specified period.
Generally, the following status reports are available:
• Loan Status report in loan currency as at a
particular date showing the cumulative
disbursements, repayments, the outstanding
loan balance and the arrears in principal and
charges when applicable.
• Loan Balance Confirmation report showing
cumulative disbursements, repayments in
principal and charges, and outstanding
balances as at a given date.
Planning-Related Information
This information is provided to borrowers and
executing agencies on demand and in accordance
with their specifications. Usually the information
required relates to consolidated basic loan data,
short and long range forecasts of debt service
payments and a summary of estimated debt service
payments.
13. Reports available to borrowers
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D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Bibliography
39
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Bibliography
General Conditions applicable to Loan, Guarantee and Grant Agreements of the
African Development Bank and the African Development Fund (February 2009)
ADB Loan Accounting, Billing and Recovery Handbook (April 1997)
Policy Relating to the Recovery of Arrears on Loans (May 1997)
Guidelines on Cancellation of ADB/ADF loans and grants (forthcoming – 2011)
Financial Products of the African Development Bank (June 2009)
Guidelines for Public Sector Loans (November 2000)
Enhancing Bank Support to Middle-Income Countries – Revised (February 2005)
Revised Financial Guidelines for Non-Sovereign Guaranteed Loans (February 2006)
Nigeria Trust Fund – Operational Guidelines (November 2008)
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40
Annexes
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AnnexesBANQUE AFRICAINE DE DEVELOPPEMENT
AFRICAN DEVELOPMENT BANK
Date : 15.10.2010 / STATEMENT OF CONFIRMED DISBURSEMENTS
Page: 0001
Period From : 01.01.2008 To : 31.12.2008
Company Name : African Development Fund
Amount Signed : UAC 12,460,000.00
Country Name : XXXXXXXXXX
Total Disbursed : UAC 7,201,219.79
Loan Number : 2100150000
XXX
Cancellations : UAC 0.00
Project Title :
XXX SECTOR XXXXXXXXX ENHANCEMENT PROJECT
Undisbursed Amount: UAC 5,258,780.21
Borrower Name : 9900000X
XX GOVERNEMENT OF XXXXXXXXXX
MINISTRY OF FINANCE
Disbursement Ratio: 57.79
Date Signed : 14.12.2000
Closing Date : 31.12.2010
Application Data
Approval Data
Disbursement Data
Value Date
Number
Curr.
Amount
Curr.
Amount
Curr.
Amount
Equiv in Ln Cur
Ex. Rate
LDV Reference
Beneficiary name
15.02.2008
UAC
19,661.72
15.02.2008
DP NO0094
USD
31,000.00
USD
31,000.00
EUR
21,321.96
19,661.72
1.08444
1/XX/2008/35441
XXXXXXXX
10.07.2008
UAC
25,486.09
10.07.2008
DP NO0095
XXX
977,445.24
XXX
977,445.24
EUR
26,254.24
25,486.09
1.03014
1/XX/2008/38480
XXXXXXXX
25.08.2008
UAC
26,258.83
25.08.2008
DP NO0096
XXX
977,445.24
XXX
977,445.24
EUR
28,100.10
26,258.83
1.07012
1/XX/2008/39357
XXX
22.09.2008
UAC
6,664.14
22.09.2008
DP NO0097
USD
10,200.00
USD
10,200.00
JPY
1,077,732
6,664.14
1.61721
1/XX/2008/39921
XXXX
TOTAL LOAN UAC
78,070.78
ZTRR0059
Ann
ex I:
Sta
tem
ent of co
nfirm
ed d
isbur
sem
ents
42
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
F O N D S A F R I C A I N DE D E V E L O P P E M E N T
A F R I C A N D E V E L O P M E N T F U N D
Edité le/Run date: 15.10.2010
Pg 1
STATUS OF LOANS BY LOAN CURRENCY AS AT 16.04.2008
Master Loan # / Loan #
Curr
Cumulative Disbursements
Cumulative Repayments &
Outstanding Balance
Arrears Principal
Arrears Charges
Debt Write-Off
MOZAMBIQUE
PROJECT : P-XX-X-XXX # xxxxxxx
xx AND xxxxxxXXXPROJECT
2100150000711
2100150000XXX
UAC
53,156,941.50
0.00
0.00
210015000XXXX
EUR
141,126.34
141,126.35
0.00
0.00
0.00
210015000X
XXX
EUR
26,937,765.48
1,352,604.56
25,585,160.92
0.00
0.00
210015000X
XXX
JPY
2,796,181,070
1,346,062,822
1,450,118,248
0
0
210015000X
XXX
USD
19,037,411.41
6,406,491.47
12,630,919.94
0.00
0.00
TOTAL Master Loan in UAC
53,156,941.50
13,365,885.37
41,078,781.12
0.00
0.00
TOT IN UAC FOR MOZAMBIQU ( 1 )
53,156,941.50
13,365,885.37
41,078,781.12
0.00
0.00
GRAND TOTAL IN UAC FOR ADF
53,156,941.50
13,365,885.37
41,078,781.12
0.00
0.00
Ann
ex II
: Loan
sta
tus re
port
Loan
Sta
tus
Rep
ort b
y Lo
an C
urre
ncy
43
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Ann
ex II
: Loan
sta
tus re
port
Loan
Bal
ance
Con
firm
atio
n
44
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Ann
ex II
I: Billin
g sta
tem
ents
Sta
tem
ent of
Bill
s D
ue b
y C
urre
ncy
45
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Annex III: Billing statements
Statement of Single Currency Payment Option
46
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Annex III: Billing statements
Account Statement
47
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Statement of amount payable after HIPC relief
Annex III: Billing statements
Summary Loan Ledger
48
D e b t S e r v i c i n g H a n d b o o k - A f r i c a n D e v e l o p m e n t B a n k G r o u p
Annex IV: Repayment statement
Application of Incoming Payments Report