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

Institutional Document

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

News Release

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


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


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.

Photo Essay

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.

More on LIBOR Transition

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

    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

    Health and Education

    Building human capital by expanding access to high quality and affordable schools and healthcare services and facilities.

  • ADB Ventures

    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.


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.


Commercial Cofinancing

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

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

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

Preliminary Review

1. Preliminary Review

The transaction team prepares a preliminary concept review form (CRF) for PSOD management approval.

Concept Review

2. Concept Review

The transaction team presents the concept review package to the Concept Review Committee for clearance

Transaction Review

3. Transaction Review

The transaction team conducts due diligence to evaluate the key risk aspects of the proposed transaction.

Final review

4. Final review

The transaction team prepares the documentation package to be presented to the Investment Committee for endorsement.

Management or Board approval

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.

Project Results

Investing in Asia’s maiden green bonds

Project Result / Case Study

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

Project Result / Case Study

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.

PRC-Sustainable Dairy Farming and Milk Safety

Project Result / Case Study

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