Financial Resources
Carrying a triple-A credit rating, ADB raises funds through bond issues on the world's capital markets. It also utilizes its members' contributions and retained earnings from lending operations. These sources comprise ADB's ordinary capital resources and account for about 73% of lending to ADB's developing member countries.
Loans are also provided from Special Funds Resources – financed mostly from contributions of donor members for ADB's concessional loan and technical assistance programs.
How ADB's Assistance is Financed
Ordinary Capital Resources: These are a pool of funds available for ADB's lending operations, replenished by borrowings from the world's capital markets. OCR loans are offered at near-market terms to better-off borrowing countries.
Asian Development Fund: Funded by ADB's donor member countries, ADF offers loans at very low interest rates and grants that help reduce poverty in ADB's poorest borrowing countries.
Technical assistance: assists countries in identifying and designing projects, improving institutions, formulating development strategies, or fostering regional cooperation. TA can be financed by grants, or – more rarely – loans through ADB's central budget or a number of special funds provided by ADB's donor members.
Innovation and Efficiency Initiative: In 2005, four financing instruments and modalities were introduced as part of ADB's IEI. These new financing instruments are intended to provide ADB clients and operational teams with additional alternatives to help finance development projects.
Now in 2007, it is looking to the future with a review of its Long-Term Strategic Framework that will determine the organization's future direction and vision to 2020.
|
Top of page
