What are ADB’s main financial products for the public sector?
ADB offers public sector loans, grants, technical assistance, and debt management products to build economic growth and social development in Asia and the Pacific.
ADB's public sector financial products are extended to governments and public sector entities, such as state-owned enterprises, in all devleoping member countries (DMCs).
ADB uses a classification system to determine the eligibility of DMCs to borrow from its Ordinary Capital Resources (OCR), at near-market terms, or at concessional OCR loan (COL) terms, or to receive grants from the Asian Development Fund (ADF).
Most OCR lending is at the London interbank offered rate (LIBOR). LIBOR-based lending (LBL) gives borrowers a high degree of flexibility. It offers a choice of currency and interest rates as well as a wide selection of repayment terms and the ability to change the original loan terms during the life of the loan. See indicative LBL rates
Concessional OCR lending is also available at very low interest rates to help reduce poverty in ADB's poorest DMCs.
ADB also offers local currencly loans to reduce currency mismatches in DMCs. Borrowers can change the interest rate basis during the life of the loan.
ADB’s Asian Development Fund (ADF) offers grants that help reduce poverty in its poorest borrowing countries.
Technical assistance helps DMCs formulate development strategies, implement projects, improve capacity, promote technology transfer, and stimulate regional cooperation.
Debt Management Products
ADB's public sector debt management products allow DMCs or their guaranteed entities to reduce economic volatility and borrowing costs, improve access to capital markets, and free up scarce financial resources for economic development. These come in the form of interest rate swaps, cross currency swaps, and local currency swaps.