Common use of Interest Rate Collar Clause in Contracts

Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. Loans for which Legal Agreements incorporate the 2017 Loan Regulations 1. For the purposes of this Appendix 2, “Loan Agreement” means (i) each loan agreement referred to in the table in Appendix 2 of the Letter Agreement; (ii) the loan agreement for each project or program referred to in the table below; and (iii) the loan agreement for any other project or program not referred to in the Letter Agreement or table below, and which, in the case of (i), (ii) and (iii), has been or will be approved by the Board before 1 January 2022. Loan or Project No. Project Name 4050 Second Health System Enhancement to Address and Limit COVID-19 under APVAX 4089 Facilitating Youth School-to-Work Transition Program – Subprogram 3 4102 Local Governance Reform Program – Subprogram 2 55105-001 Build Universal Health Care Program – Subprogram 1 54332-001 Supporting Innovation in the Philippine Technical and Vocational Education and Training System Project ▇▇▇▇▇-▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Project

Interest Rate Collar. Upon the establishment of an Interest Rate Collar on the Floating Rate, the Borrower shall, for each Interest Period during the Conversion Period, pay interest on the principal amount of the Loan withdrawn and outstanding from time to time to which said Conversion applies at said Floating Rate, unless such Floating Rate during said Conversion Period: (i) exceeds the upper limit of such Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such upper limit; or (ii) falls below the lower limit of said Interest Rate Collar, in which case, for the relevant Interest Period, the Borrower shall pay interest on such principal amount at a rate equal to such lower limit. Loans for which Legal Agreements incorporate the 2017 Loan Regulations 1. For the purposes of this Appendix 2, “Loan Agreement” means (i) each loan agreement referred to in the table in Appendix 2 of the Letter Agreement; (ii) the loan agreement for each project or program referred to in the table below; and (iii) the loan agreement for any other project or program not referred to in the Letter Agreement or table below, and which, in the case of (i), (ii) and (iii), has been or will be approved by the Board before 1 January 2022. Loan or Project No. Project Name 4050 Second Health System Enhancement to Address and Limit 4076 Strengthening Social Resilience Program - Subprogram 1 4079 Responsive COVID-19 under APVAX 4089 Facilitating Youth School-to-Work Transition Program – Subprogram 3 4102 Local Governance Reform Program – Subprogram 2 55105-001 Build Universal Health Care Vaccines for Recovery Project Under the Asia Pacific Vaccine Access Facility 4115 Sustainable Economic Recovery Program – Subprogram 1 543324108 South Asia Subregional Economic Cooperation Dhaka-001 Supporting Innovation in the Philippine Technical and Vocational Education and Training System Sylhet Corridor Road Investment Project ▇▇▇▇▇– Tranche 1 4126 Dhaka Environmentally Sustainable Water Supply Project – Additional Financing 42180-▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Project019 Third Public-Private Infrastructure Development Facility - Tranche 2