Mainstreaming the Multitranche Financing Facility

Date: June 2008
Type: Policies, Strategies, and Plans
Subject:
ADB administration and governance; ADB funds and products

Description

In August 2005, the Board approved new financing instruments and modalities, which included, amongst others, the multitranche financing facility (MFF). An MFF establishes a partnership between ADB and a client for the purposes of working in a sector or sectors. It has features of a standby letter of credit, and can be used to extend debt finance and advice for (a) large stand-alone projects with interrelated components, (b) investment programs with interconnected components in a sector or sectors, and (c) credit lines for small and mediumsized enterprises and local governments.

Contents

  • Pilot Financing Instruments and Modalities
  • The Multitranche Financing Faciclity
  • Lessons
  • Mainstreaming the Multitranche Financing Facility
  • Recommendation
  • Appendixes