Loan Syndication

B Loans are funded by commercial banks and other eligible financial institutions with ADB acting as lender of record. A direct ADB loan (A Loan) is required in the project to fulfill ADB’s direct participation requirement.

Although B Loans do not provide co-financiers with recourse to ADB for debt service, such loans do enjoy the same privileges and immunities as ADB’s direct or A Loans, including:

• exemption from restrictions on currency conversions and on remittance of interest payments and repatriation of principal,
• exemption from withholding taxes,
• reduced likelihood of rescheduling in the event of an external debt crisis in the borrowing country, and
• exemption from country provisioning requirements (where applicable).

Other benefits include ADB's:

• project appraisal,
• supervision and monitoring of project implementation, and
• loan administration services.

Reputable commercial financial institutions not incorporated or residing in the country of the borrower or project can participate as a B Loan lender.