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.

ADB Frontier

The ADB Frontier Facility

Frontier-market gazelle companies1 are starved for risk capital. ADB Frontier is a next-generation ADB facility designed to:

  • Invest in fast-growing SMEs ("gazelles") operating in small frontier markets, including agrifood, light manufacturing, technology and tourism industries.2
  • Crowd-in private capital, multinational companies, and business expertise to help gazelles grow and integrate into regional supply chains.
  • Invest with a gender and climate impact lens.
  • Catalyze new industries, digital transformation, employment, and economic growth.

1 A gazelle company is a young, very fast-growing company. It maintains consistent and rapid expansion of both employment and turnover (sales) for at least four consecutive years.
2 Eligible ADB developing member countries will include least developed countries (LDC), fragile and conflicted affected states (FCAS), and small island developing states (SIDS).

 

Investing for Impact on Commercial Principles

ADB Frontier will invest in impactful companies with commercial potential.

Seed Capital

ADB Frontier
provides investment-readiness seed capital financing to select companies in Cambodia, Lao PDR, Fiji and other selected Pacific Islands. ADB may consider providing follow-on funding to the top-performing Seed portfolio companies.

Funding size: Up to $400,000

 

Managed by ADB

ADB Frontier is a next-generation ADB facility that will build upon the Bank’s strengths and successful recent models.

  • Governance

    Governance

    ADB Frontier will combine rigorous governance with streamlined business processes that consider nuanced understanding of SME capacity and requirements. Transactions will benefit from ADB’s stringent integrity due diligence and safeguards policies.

  • Infrastructure

    Infrastructure

    ADB Frontier will benefit from ADB’s regional infrastructure including its extensive resident missions in small frontier markets, as well as the Bank’s extensive knowledge and market insights.

  • Networks

    Networks

    ADB Frontier will tap into ADB’s vast networks and on-the-ground partnerships to help portfolio companies connect with new customers, access additional sources of finance, and build their capacity.


Funding Partners

  • USAID
  • EAKPF
 

Investment Portfolio

  • Green Goods

    Green Goods (Lao PDR)

    Produces high quality organic eggs for local and export markets, adopted technology-enabled solutions to modernize a traditional industry to increase income for farmers and help them adapt to climate change.

  • Slow Coffee

    Slow Coffee (Lao PDR)

    Promotes biodiversity on coffee farms by growing and protecting native plants and trees. The agroforests capture more carbon than is emitted in their entire production chain. Local farmers earn living income that is sustainable, fair, and equitable.

  • Kirisu

    Kirisu Farm (Cambodia)

    Kirisu produces high-quality, local dairy products, establishing international best practice dairy farming in Cambodia. The company’s climate strategies include leveraging green technology to minimize waste and tillage during processing and working with local farmers for feed inputs.

  • Loca

    Loca (Lao PDR)

    Loca is an app based ridesharing service for taxi and private cars, grocery and delivery service, and payments platform. Loca is creating an EV ecosystem that includes EV ridesharing fleet, EV charging stations, and EV financing.

 

Knowledge Library

A collection of reports and resources that inspired and formed the impetus for ADB Frontier.