Private Sector Finance

B Loan (Complementary Financing Scheme)

ADB's B loan is available for private sector projects in which ADB is a direct participant.

B loans are funded by commercial lenders with ADB acting as "lender of record".

Although B loans do not provide co-financiers with recourse to ADB for debt service, such loans do enjoy the same privileges and immunities given to ADB direct loans. These include

• sharing of ADB's preferred creditor status
• access to ADB's projects appraisal and loan documentation to facilitate credit analysis and due diligence
• possible reduction in provisioning requirements in the co-financier's home country.

B loan documentation

A single loan agreement may be used, covering both the main loan from ADB and the B loan. We believe all senior lenders to a project, including cofinanciers, should receive debt service on an equal basis.

Cofinanciers of a B loan are allowed to accelerate the loan, if it is in default due to nonpayment of principal or interest. We reserve the right to accelerate our direct loan, based on an optional cross-default clause (a standard feature of our B loan documents).