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p. 21 of 39 BACK | NEXT The Record Chairman’s Message Board of Directors' Report New and Revised Policies and Procedures Internal Initiatives Governing Structure Financing Operations Financial Resources Funding Overview of Operations Loans Equity Operations Cofinancing and Guarantee Operations Grants Technical Assistance Multitranche Financing Facilities Resource Transfers Private Sector Operations 2005 in Figures Management Board of Directors Operations in 2005 East and Central Asia Mekong The Pacific South Asia Southeast Asia

Financing Operations in 2005

Funding

About 72.9% of cumulative lending is from OCR. Funding from OCR comes from three distinct sources: private placements and capital markets in the form of borrowing; paid-in capital provided by shareholders; and accumulated retained income (reserves), which provides a buffer for risks.

The main instruments for providing help to ADB’s DMCs are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

ADB offers a range of modalities and terms for loans aimed at improving performance.

Loans are also provided from Special Funds.

The ADF offers loans on concessional terms to members with low per capita gross national product and weak debt-repayment capacity. It is the only multilateral development bank concessional fund dedicated exclusively to economic and social development in the region. The ADF is financed by periodic voluntary contributions from donors. The current ADF IX program is $7 billion for 1 January 2005–31 December 2008.

ADF IX grants are assisting countries in reducing the debt burden of development finance, making the transition from conflict to peace and stability, and combating HIV/AIDS and other infectious diseases.

ADB also manages and administers additional funds: Japan Scholarship Program, Japan Fund for Poverty Reduction, and Japan Fund for Information and Communication Technology, including those grants provided by bilateral and multilateral donors to support technical assistance and soft components of loans. In recent years, thematic trust funds focusing on gender and development, governance, poverty reduction, water, energy, and the environment were established to support technical assistance operations and selected components of loan projects.

Technical assistance funded through grants or loans helps maximize ADB’s development impact. Technical assistance grants are used for preparing projects, and for supporting advisory and regional activities in areas such as law and policy reform, strengthening fiscal policies and procedures, good governance, capacity building, and natural resource management.

ADB has a triple-A credit rating and actively mobilizes financial resources through its cofinancing operations, tapping official, commercial, and export credit sources. Assistance to its DMCs creates an enabling environment for private sector development. ADB also directly finances private sector projects to assist commercial investors and lenders (www.adb.org/about/ fnncemgt.asp).

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