Private Sector (Nonsovereign) Financing
In the Spotlight
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.
Staff from the Private Sector Operations Department discuss what drew them to this dynamic area of ADB's work, how they like living in Manila, and what they enjoy away from the office.
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.
Private sector portfolio (2016)
Direct value-added cofinancing (2016)
Private sector investments (2016)
Private sector transactions for low-income countries (2016)