Private Sector (Nonsovereign) Financing
In the Spotlight
ADB is administering a $6 million loan from the Clean Technology Fund to help Simpa Energy India Private Ltd expand its off-grid solar home system service to underserved markets in rural India.
ADB and the Government of Japan have agreed to a $16 billion partnership over the next 5 years to boost private and public infrastructure throughout Asia and the Pacific.
Global availability of trade finance improved in 2014 but gaps were increasingly pronounced in emerging economies, including in Asia, driven by banks’ decision to move away from high-risk markets.
Aid for Trade to the Pacific is an important enabler of the private sector, and ICT infrastructure and ICT-related services are critical for connectivity in the Pacific where trade costs are substantially above the global average.
As a catalyst for private investments, ADB provides direct financial assistance to private sector projects. While ADB’s participation is usually limited, it leverages a large amount of funds from commercial sources to finance these projects. Projects must also have clear development impacts and/or demonstration effects that go beyond the benefits captured in the financial rate of return.
10.2(2014) Nonsovereign operations, in US$ billions
6.9(2014) Value of private sector approvals, in US$ billions
1.9(2014) Private sector approvals financed by ADB, in US$ billions