Most of ADB's lending comes from its ordinary capital resources, offered at near-market terms to lower- to middle-income countries, and beginning in 2017, at very low interest rates to lower income countries. ADB also provides loans and grants from Special Funds, of which the Asian Development Fund is the largest. The Asian Development Fund offers grants that help reduce poverty in ADB's poorest borrowing countries.
An innovation to combine concessional lending operations with ordinary capital resources balance sheet aims to enhance ADB’s lending capacity. This was unanimously endorsed by ADB's Board of Governors in May 2015 and takes effect in 2017. With this reform, ADB’s financing capacity will increase to $20 billion by 2020. Read more about combining ADB’s Asian Development Fund and Ordinary Capital Resources.
ADB operations reached an all-time high of $31.5 billion in 2016, a 17% increase from $26.9 billion in 2015.
ADB's approvals of loans and grants for sovereign and nonsovereign operations reached $17.5 billion — a 9% increase from $16.0 billion in 2015. Non-concessional loans from ADB’s Ordinary Capital Resources (OCR) amounted to $14.4 billion. Concessional loans and grants from the Asian Development Fund (ADF) reached $3.1 billion, with $2.6 billion going to loans and $518 million to grants. Technical assistance increased by around 20% to $170 million from 2015’s $141 million figure.
ADB was also the first multilateral development bank to commit to a sizable climate finance target. In September 2015, it was announced that the ADB would double annual climate financing to $6 billion by 2020.