How does cofinancing work at ADB?

To respond to the growing needs of the region and with finite resources, ADB works with international development agencies, multilateral and bilateral institutions, the private sector, and others to finance projects that reduce poverty.

Official cofinancing

comes from multilateral and bilateral development agencies funded by sovereign states. It mobilizes funding for grants, loans, and technical assistance in ADB developing member countries. With loans offered at terms more favorable than those available commercially, official cofinancing aims to deliver low transaction costs, efficient processing, and transparency. More

Commercial cofinancing

facilitates investment, trade, and capital flows into developing member countries. Both private and public institutions provide this type of cofinancing. It is usually sourced from financial markets and priced at commercial terms. Useful for projects and programs that commercial partners would consider risky without ADB involvement. More

Private sector partnerships

with socially responsible companies, foundations, and philanthropic institutions are also important. Often they provide new experience and resources to improve the development effectiveness of ADB’s work. More

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