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p. 6 of 24 BACK | NEXT The Asian Development Bank Mobilizing Private Capital Assistance to Private Enterprises Eligibility for ADB Assistance Advantages of Working with ADB Extent of ADB Assistance Appraisal Criteria Loan Terms Security Procurement Accounting and Auditing Arrangements Corporate Governance Environmental Considerations Role of ADB in Supervising Investments Risk Principles for Investment Funds Sale of ADB Equity Investment Commercial Cofinancing Complementary Financing Scheme Guarantees Export Credit Agency Cofinancing Applying for ADB Assistance Processing Procedures Illustrative Private Sector Projects of ADB Contact Information

ADB’s Private Sector Operations: Catalyzing Private Investments Across Asia and the Pacific

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Extent of ADB Assistance

ADB ’s total support for a project for its own account,including loan, equity investment,partial credit guarantee,and underwriting commit- ment is limited by policy to 25 percent of the total cost of the project or US$75 million,whichever is lower.ADB also provides political risk guarantee,coverage without the host government ’s counter-guarantee,f up to 50 percent of the total project cost or US$150 million,whichever is less.ADB participation is intended to catalyze financing from local or foreign sources,not to compete with these sources.ADB ’s policy is to limit equity investments to less than 25 percent of the total share capital.Also,ADB cannot be the largest single investor in an enterprise.If needed,ADB may assist in mobilizing additional debt from commercial banks and other financial institutions.This may be through parallel financing,separate from the ADB package,or through cofinancing,in which ADB acts as lender of record and the commercial banks take participations in the ADB loan, or through the use of guarantees.

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