ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members—49 from the region.
ORGANIZATION
ACCOUNTABILITY
ADB supports projects in developing member countries that create economic and development impact, delivered through both public and private sector operations, advisory services, and knowledge support.
Private Sector Financing
ADB focuses on projects that help promote private investments in the region that will have significant development impact and will lead to accelerated, sustainable, and inclusive growth.
In the Spotlight
Private Sector Operations in 2022: Report on Development Effectiveness
The Private Sector Operations—Report on Development Effectiveness series reviews the development effectiveness of operations carried out by the Asian Development Bank Private Sector Operations Department.
ADB’s Private Sector Operations Boost Support for Climate Action, Food Security
ADB's private sector operations in 2022 saw project commitments reach $1.1 billion with the percentage of projects receiving climate finance double the level of 2021, according to ADB’s Private Sector Operations in 2022 – Report on Development Effectiveness.
Microfinance: Empowering Women to Rebuild Lives After Crisis
Watch how ADB facilitates the recovery of communities from conflict and COVID-19 pandemic by providing access to microfinance, and helps break gender barriers by empowering Filipino women to engage in income-generating activities.
Women’s Finance Exchange
The Women’s Finance Exchange (WFX) is ADB's initiative to support financial institutions and their women borrowers through innovative solutions. The WFX aims to address challenges faced by women’s businesses in accessing suitable financial products, and works with partners to improve gender-responsive financing.
Climate Action and ADB's Private Sector Operations
Climate change presents immense and cross-cutting development challenges in Asia and the Pacific. Engaging the private sector to deliver climate solutions can promote economic growth and jobs and help to place the region on a low-carbon sustainable growth path.
Private Sector’s Critical Role in Combating Climate Change in Asia and the Pacific
By scaling up its support for the private sector, ADB is helping businesses deliver climate solutions that will help to place the region on a low-carbon sustainable growth path.
In Southeast Asia, Private Investment in Clean Energy is Helping to Fight Climate Change
ADB’s private sector operations department partners with the private sector to find new ways to fill investment gaps for clean energy generation and distribution.
Kazakhstan’s Emerging Solar Industry is Helping its Transition to a Green Economy
Milestone solar projects in Kazakhstan are expected to boost renewables in its energy mix. These projects are part of the country’s step to decarbonize its economy.
What is ADB doing about LIBOR Transition?
A disorderly LIBOR transition would present systemic risks and idiosyncratic risks for market participants and could have negative implications for borrowers. ADB has been preparing since 2018 to support private sector borrowers towards an orderly LIBOR transition and to safeguard its financial soundness.
Core Sectors and Focus Areas
-
Infrastructure
Catalyzing economic growth and social equity via energy, waste, water, transport, and telecommunications facilities.
-
Financial Sectors and Capital Markets
Providing better access to higher-quality financial services across Asia's developing markets.
-
Agribusiness
Promoting environmentally-friendly food production, processing, and distribution.
-
Health and Education
Building human capital by expanding access to high quality and affordable schools and healthcare services and facilities.
-
Business Development
Exploring, identifying, and designing new financing products that contribute to ADB’s long-term project pipeline.
Financial Products
Loans and Debt
ADB offers hard currency loans, both senior and subordinated, as well as mezzanine financing. We also offer local currency loans in selective markets on a case to case basis. Interest rates and other terms vary, depending on a company’s or project’s needs and risks.
Equity Investments
ADB may invest directly in an enterprise. It offers financing through equity investments, including direct equity investments in the form of common shares, preferred stock, or convertibles. Equity investments in enterprises, especially financial institutions, occur before an initial public offering.
Guarantees
ADB extends guarantees for eligible projects which enable financing partners to transfer certain risks that they cannot easily absorb or manage on their own to ADB. Guarantees can be provided when ADB has a direct or indirect participation in a project or related sector, through a loan, equity investment or technical assistance.
Loan Syndication
ADB partners with commercial banks, impact investors, institutional investors, and development finance institutions to provide debt for projects though B loan, complementary financing scheme, and parallel loan structures.
Blended Finance
ADB’s blended concessional finance facilities focus on catalyzing transactions and mobilizing investment in high development impact areas of strategic importance to ADB, including climate and gender.
Technical Assistance
In addition to financial products, ADB also offers technical assistance (TA), on a selective basis, for public and private sector operations.
Programs
Commercial Cofinancing
ADB assists developing member country governments and private sector borrowers in securing debt financing on commercial terms for ADB projects through engagement with commercial financial institutions.
Microfinance Risk Participation
A credit enhancement program designed to address a market gap by sharing risks to promote local currency lending to microfinance institutions. Because of its risk-sharing nature, the program encourages private sector participation.
Trade and Supply Chain Finance Program
Fills market gaps for trade finance by providing guarantees and loans to over 200 partner banks to support trade, providing companies financial support to engage in Asia's most challenging markets.
Private Sector (Nonsovereign) Projects
Credit Approval Process
1. Preliminary Review
The transaction team prepares a preliminary concept review form (CRF) for PSOD management approval.
2. Concept Review
The transaction team presents the concept review package to the Concept Review Committee for clearance
3. Transaction Review
The transaction team conducts due diligence to evaluate the key risk aspects of the proposed transaction.
4. Final review
The transaction team prepares the documentation package to be presented to the Investment Committee for endorsement.
5. Management or Board approval
Following endorsement from the Investment Committee, the proposed ADB assistance is presented to the Management or to the Board of Directors for approval.
6. Closing
Following the Management or Board approval, the documentation for the transaction is finalized and signed.
Proposed
Approved/Active
Operational Results
Project Results
Investing in Asia’s maiden green bonds
Green bonds are an increasingly viable option for investors in Asia, like pension and superannuation funds, looking to get involved in green sustainable financing.
Indonesia: Muara Laboh Geothermal Power
This project involves a $70 million loan from ADB with $19.25 million Clean Technology Fund (CTF) concessional financing and a $20 million parallel loan funded through Leading Asia's Private Sector Infrastructure (LEAP) Fund.
People's Republic of China (PRC): Sustainable Dairy Farming and Milk Safety
ADB will provide a $62.5 million yuan loan to Inner Mongolia Saikexing Breeding and Biotechnology Group (SKX) and will act as the lender of record for the participation of selected commercial banks of up to $62.5 million equivalent in yuan.
Flickr photos from the Private Sector album.
News and Resources
Activities
News
ADB, Indorama Sign Sustainability Linked-Loan to Support Farmer Climate Resilience in Uzbekistan
ADB and Findev Canada Partner to Support Sustainable and Inclusive Investments in Asia and the Pacific
ADB and PIDG to Cooperate on Early-Stage Infrastructure Investments in Asia and the Pacific
ADB’s Private Sector Operations Boost Support for Climate Action, Food Security
Republic of Korea Expands Funding for ADB Ventures to Support Climate Tech Startups in Asia
Blogs
- Why Singapore’s Ecosystem for Technology Startups Is among the Best
- For Global Trade to Survive, It Needs an Overhaul
- How to Successfully Privatize State-Owned Enterprises
- Technology-Based Lending Promotes Entrepreneurship and Innovation in the Republic of Korea
- How Patents and Innovation Procurement Can Boost Asia's Recovery
