Cofinancing

Commercial Cofinancing Defined

From ADB's perspective, cofinancing refers to additional financial resources mobilized for ADB-assisted projects from sources other than

• the borrowing country, in public sector projects
• the project sponsors, in private sector projects
• direct ADB assistance

ADB mobilizes cofinancing from both official and commercial sources. Commercial sources of cofinancing include commercial banks, insurance companies, institutional investors, and export credit agencies.

The predominant types of commercial cofinancing used to fund ADB-assisted projects include

• syndicated loans
• bonds
• floating rate notes
• convertible debt

To facilitate commercial cofinancing, ADB utilizes the following:

• the Complementary Financing Scheme (CFS)
• the Political Risk Guarantee (PRG)
• the Partial Credit Guarantee (PCG)

These products are used to support commercial debt cofinancing, not equity investments.