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Private Sector (Nonsovereign) 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.

Private Sector Financing Activities

  • 12 November 2021 ADB signs project loan to support India's highway development

    ADB's Private Sector Infrastructure Finance Division on 12 November 2021 signed an INR 3.8 billion loan to support an expansion from 2 to 6 lanes of a 50.8-kilometer highway being undertaken by Dilip Buildcon Limited in Andhra Pradesh, India, under the Hybrid Annuity Model. This is ADB’s first private sector highway project in South Asia and complements ADB’s ongoing strategic support to India’s highways sector.

  • 2 November 2021 ADB, People’s Republic of China’s Zhujiang Financial Leasing sign loan to support SMEs

    VP Ashok Lavasa and Private Sector Operations Deputy Director General Christopher Thieme participated in a virtual ceremony on 2 November 2021 where Private Sector Infrastructure Finance Division Director Christine Engstrom signed a $40 million equivalent local currency loan with Zhujiang Financial Leasing (ZFL) to expand the company’s long-term lease funding for SMEs. A parallel loan of $40 million equivalent from DEG, a subsidiary of KfW, the German development bank, was also signed. The project will target SMEs outside the four most developed cities—Beijing, Guangzhou, Shanghai, and Shenzhen— to promote more inclusive growth. The loan will help ZFL to pilot a new lease finance product targeting micro businesses. Read the news release.

  • 19 October 2021 ADB signs first private sector housing development loan for Georgia

    ADB on 19 October 2021 in Tbilisi signed a $10 million financing for Georgia’s urban sector. The loan will help Optima, a leading residential and commercial real estate company which is part of m2 Group, to complete two housing projects, and aims to address development challenges for affordable, energy-efficient, safe, and accessible housing. This is ADB’s first private sector housing development project in the South Caucasus and Central Asia. Read the news release.

  • 10 September 2021 ADB, EBRD, ENA sign agreement to modernize and expand Armenia’s electricity distribution networks

    ADB and EBRD on 10 September 2021 held a ceremony to mark the financial close for a climate finance transaction, which includes a $20 million ADB loan and a $15 million loan from the Leading Asia's Private Infrastructure (LEAP) Fund, an ADB-managed trust fund that will support the Electric Networks of Armenia Closed Joint-Stock Company (ENA). The project totalling $148 million will upgrade Armenia’s electricity distribution networks to ensure reliable electricity supply, especially in the provinces. VP Ashok Lavasa highlighted that this landmark project, ENA Investment Program Phase 2, will contribute to ADB’s $80 billion target in cumulative financing for climate mitigation and adaptation by 2030. ADB Private Sector Operations Department (PSOD) Director General Suzanne Gaboury noted that ADB’s long-term partnership and continued investment in ENA to improve access to affordable and reliable energy supply is critical to ensure inclusive growth and development in the region. PSOD Infrastructure Finance Division Director Shantanu Chakraborty signed the documents on behalf of ADB. Alternate Executive Director Karen Murray and Aremenia Resident Mission Country Director Paolo Spantigati also joined the event. Read the news release.

  • 8 September 2021 ADB, BlueOrchard collaborate to expand microfinance coverage in developing member countries

    ADB's Microfinance Program and BlueOrchard Finance, in an online event on 7 September 2021, announced a partnership to expand microfinance coverage in ADB's developing member countries through a $50 million risk-sharing agreement. BlueOrchard is the first impact investing asset manager to partner with the Microfinance Program. Under this partnership, the BlueOrchard Microfinance Fund will invest in selected microfinance institutions and banks, while ADB will offer risk participation to help expand the fund’s risk appetite and deploy capital into developing member countries. Private Sector Operations Director General Suzanne Gaboury said loans provided by microfinance institutions are a lifeline to underserved clients such as low-income households and small businesses, including those owned or led by women, to help them cope with the hardships imposed by the COVID-19 pandemic. Ms. Gaboury and BlueOrchard CEO Philipp Mueller announced the partnership at the event, joined by BlueOrchard Regional Director - Eurasia, Sevara Mukhamet-Alieva, Private Sector Financial Institutions Director Christine Engstrom, and Microfinance Program Lead Anshukant Taneja. Read the news release.

  • 20 August 2021 ADB recognized as best project finance bank in Asia and the Pacific by Global Banking and Finance Review

    The UK-based international financial magazine Global Banking and Finance Review has named ADB as the Best Project Finance Bank Asia Pacific 2021. The award recognizes ADB's successful leadership in closing multiple private sector-led projects in support of sustainable and resilient infrastructure development in the Asia and Pacific region in 2020.

  • 12 August 2021 VP Lavasa underscores women's access to finance at Women's Finance Exchange launch

    VP Ashok Lavasa on 12 August 2012 highlighted the importance of empowering women by eliminating barriers to finance at the launch of the Women's Finance Exchange (WFX), an  initiative of ADB's Private Sector Operations Department (PSOD) to support financial institutions and women borrowers through tech-enabled solutions, digital support, and capacity building. VP Lavasa noted the seeding and development of women-owned and women-led businesses will help empower women to take control over resources and give them tools for life-long change. PSOD Director General Suzanne Gaboury underscored the importance of gender responsive financing across ADB's sovereign and private sector operations and fintech solutions for women's increased access to finance. More than 260 participants joined the event. ADB Private Sector Financial Institutions Division Director Christine Engstrom launched the WFX, and Chief of Gender of Equality Thematic Group, Samantha Hung, moderated a panel discussion. 

  • 10 August 2021 ADB receives Global Finance's multilateral institution award for outstanding leadership in sustainable finance

    ADB has received the 2021 award for Outstanding Leadership in Sustainable Finance by a Multilateral Institution in Asia-Pacific from Global Finance Magazine. ADB was recognized for the efforts of its Private Sector Operations Department’s Trade and Supply Chain Finance Program to use trade and supply chain finance to promote sustainability and green initiatives; and for three private sector infrastructure projects supporting sustainability—Uzbekistan: Nur Navoi Solar Foreign Enterprise; Georgia: Georgia Global Utilities; and Viet Nam: Phu Yen TTP Joint Stock Company. This is the first year an award for multilateral institutions is given to recognize global and regional leadership in sustainable finance, defined as funding for initiatives designed to mitigate the negative impacts of climate change and help build a more sustainable future. 

  • 26 July 2021 ADB partners with Henan Tian Lun to support clean energy supply in Henan Province, People's Republic of China

    ADB Private Sector Operations Department Deputy Director General Christopher Thieme, China Tian Lun Gas Group Limited Chairman Zhang Yingcen, and Henan Tian Lun Gas Group Limited CEO Liu Min signed on 26 July 2021 a $50 million facility to support uninterrupted last-mile natural gas supply to about 630,000 residential, commercial, and industrial consumers in Henan Province, PRC. The project will also support effective gender mainstreaming by providing single-mother households with access to energy on favorable payment terms and free supply of childcare products under a gender action plan. Read the news release

  • 22 July 2021 ADB, other MDBs join US Treasury meeting on private capital for climate finance

    President Masatsugu Asakawa on 22 July 2021 met with US Secretary of the Treasury Janet Yellen and heads and representatives of other multilateral development banks (MDBs) to discuss increasing MDB private capital mobilization and overall climate ambition. President Asakawa highlighted ADB’s efforts to mobilize private capital for climate finance in alignment with the goals of Strategy 2030 and the Paris Agreement. He noted ADB’s holistic approach to magnify impact by addressing upstream and downstream challenges to crowd in private climate finance. The President also cited ADB’s partnership with MDBs to jointly fund, and to deploy, tools to help with project preparation and decision-making with climate considerations. Private Sector Operations Department Director General Suzanne Gaboury also participated in the meeting. Attendees included US Special Presidential Envoy for Climate, John Kerry, and heads and representatives of the African Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank Group, and the World Bank Group. 

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