Private Sector (Nonsovereign) Financing
In the Spotlight
Indonesia is a geothermal energy hotspot. ADB investments are helping build market experience and open the sector to more partners and financing.
Achieving the Agenda 2030 for Sustainable Development and the Paris Agreement on Climate Change will require significant contributions by the private sector. See infographic: ADB's Private Sector Operations
ADB uses credit enhancement products to promote private sector financing for lending to micro and small business owners. In India, it works with banks to provide local currency financing to microfinance institutions.
ADB has approved two projects worth over $210 million in debt financing from LEAP Fund in its first year of operation.
For many women who live on the edge of poverty, access to microfinance loans can open a path to a brighter future for themselves and their families.
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.
Committed projects in frontier countries (2017)
Direct value-added cofinancing (2017)
Total private sector portfolio (2017)
ADB's private sector commitments (2017)
- ADB Finances First Ever Utility-Scale Solar PV Plants in Indonesia in $160 Million Renewables Deal
- ADB, Citi Partner on New Risk Product to Help SMEs
- ADB's Private Sector Operations Commitments Reach $2.3 Billion in 2017
- ADB, Maybank Partner to Provide $20 Million for Microfinance in Myanmar
- ADB Provides Additional Trade Support for Viet Nam