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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.

In the Spotlight

Institutional Document

Private Sector Operations in 2019: Report on Development Effectiveness

ADB is targeting private sector operations to comprise one-third of total operations in number by 2024. To achieve this, private sector projects will include smaller, riskier projects that are innovative, complex and in challenging markets and sectors.

Article

At ADB Ventures, the bottom line is to help developing Asia meet the SDGs

ADB Ventures’ vision is to become the region’s largest impact technology platform, crowding in more than $1 billion of risk capital to contribute to the achievement of the SDGs by 2030.

Article

Trade in the Shadow of COVID-19: Going Forward Together, Not Apart

ADB’s Trade and Supply Chain Finance Program's supply-chain mapping tool aims to identify blockages and other impediments to critical goods being produced and distributed for COVID-19 response.

Video

Journey to Space: ADB’s First Satellite Financing with Kacific 1

ADB invested $50 million to Kacific Broadband Satellites International Limited (Kacific) to provide affordable satellite-based, high-speed broadband internet connections to countries in Asia and the Pacific.

Making a Difference

Private investment is key to Asia’s prosperity. ADB works with private sector clients to empower communities in many ways—like building the infrastructure they need, boosting farmer incomes, and delivering clean energy supplies.

Videos

Making a Difference through Private Sector Operations

By partnering with ADB’s private sector operations, you can help economies to grow and communities to thrive. Here’s what some of our clients say about working with us.

Article

New ADB tool offers roadmap to unblock supplies of life-saving products

New ADB online tool maps supply chains for PPE, medical equipment, treatments, tests and vaccines that are crucial to the fight against COVID-19.

Video

Broadband Internet Satellite is Key to Achieving Papua New Guinea's Vision for Effective e-Government Services

Connectivity through Kacific 1 is helping Papua New Guinea to improve judicial services using electronic-based systems. Other government offices in the country are expected to adopt similar innovative approaches and modern technologies.

Core Sectors and Focus Areas

Infrastructure

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

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.

Financial Products

Loan/Debt Security

Direct loans at market-based rates, B-loans, and unfunded risk participations.

Equity Investments

Direct investments in common shares, preferred stock, or convertibles; investments in private equity funds.

Guarantees

Protection against political and credit risks.

Technical Assistance

Collaborative support for project implementation, institutional capacity building, economic stability, and inclusive growth; attractively priced and structured financing from third-party sources for specific industries or geographic areas.

Programs

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

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.

Project Results

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.

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.

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.

News and Resources