Common use of Spread Change Clause in Contracts

Spread Change. a) Spread mentioned above includes a credit risk premium. In the event of any downward change in the credit rating (both internal/external rating) /credit risk profile, the Bank would be entitled to change the credit risk premium, which would result in a increase in the spread and consequently the change of interest. b) In addition to spread change condition mentioned above, the bank has a right to revise the “spread” over external benchmark after three years from date of loan/facility disbursal and thereafter after completion of every 3 years. 1. Loan Proposal Number

Spread Change. a) Spread mentioned above includes a credit risk premium. In the event of any downward change in the credit rating (both internal/external rating) /credit risk profile, the Bank would be entitled to change the credit risk premium, which would result in a increase in the spread and consequently the change of interest. b) In addition to spread change condition mentioned above, the bank has a right to revise the “spread” over external benchmark after three years from date of loan/facility disbursal and thereafter after completion of every 3 years. 1. Loan Proposal Number.