The annual interest rate on credit facilities granted by Cdbbank is expressed as the sum of a base rate plus a margin (or ‘’spread’’). The base rate used may be either internal i.e. set by Cdbbank or external. At present Cdbbank only offers credit facilities linked to an external base rate, as explained immediately below.
External Lending Base Rates:
- Credit facilities granted in EURO are linked to EURIBOR (Euro Interbank Offered Rate) which is a daily reference rate for periods ranging from overnight to one year. EURIBOR is published by the European Money Markets Institute based on the averaged interest rates at which Eurozone banks offer to lend unsecured funds to other banks in the euro wholesale money market. Further details may be found at emmi-benchmarks.eu.
Terms of credit facilities granted after November 2015 provide that, in case the relevant EURIBOR is less than zero, then EURIBOR shall be deemed to be zero for the purposes of the credit facilities. - Credit facilities in EURO granted before 2010, are referenced against the ECB Base Interest Rate which is the cost at which banks may borrow from the ECB for a period of one week
- Credit facilities in certain currencies other than EURO are linked to the corresponding LIBOR(London Interbank Offered Rate). LIBOR rates for periods ranging from overnight to one year are published daily by ICE Benchmark Association Ltd and are based on rates offered by major banks to one another in the London market. Further details may be found at theice.com/iba/libor.
Terms of credit facilities granted after November 2015 provide that, in case the relevant LIBOR is less than zero, then EURIBOR shall be deemed to be zero for the purposes of the credit facilities.
