ADB Commits to Reduce Transaction Costs
The Asian Development Bank (ADB) has introduced a series of enhancements to bank's main lending instrument, the LIBOR-based loan (LBL) product.
Consistent with its Medium-Term Strategy II, ADB is committed to reducing transaction costs and ensuring that its financial products continue to be flexible and innovative.
"Five years after the introduction of the LBL product, it was timely to conduct a review of our core loan product", says ADB vice president for finance and administration Khempheng Pholsena.
"ADB undertook a survey of its borrowers earlier in the year to solicit feedback on our lending products. With the approved enhancements, we feel confident that we are able to offer a loan product that is tailored to meet the evolving demand of our borrowers."
The proposed enhancements to the LBL product include a wider choice of currencies, more flexible repayment terms, simplified rebate/surcharge calculations, and offering an option for borrowers of ADB's legacy pool loans to convert their loans to the new LBL product at prevailing market rates. …