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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.

ADB's Work in the Private Sector

ADB's Work in the Private Sector

ADB's Private Sector Operations Department (PSOD) supports privately held and state-sponsored companies in Asia and the Pacific.

The PSOD catalyzes, structures, and provides financing to privately held and state-sponsored companies across a wide range of industry sectors throughout developing Asia. The emphasis is on commercially viable transactions that generate attractive financial returns while also delivering on ADB's organization-wide mission to promote environmentally sustainable and inclusive economic growth.

Download the brochure on ADB's private sector operations

What We Do

Finance private sector companies, banks, and projects in infrastructure, financial services, clean energy, agribusiness, and other core sectors via debt and equity investments

Mobilize third-party capital via credit enhancement products, risk transfer agreements, and mobilization of donor funds

Invest in private equity and other structured funds and manage institutional capital in such funds on behalf of clients

Actively manage our portfolio to ensure strong financial performance, high development impact, and strong compliance with environmental, social, and governance safeguards

The PSOD Advantage: Our Value Addition

  • Wide network of strategic partnerships with leading market players, financial and research institutions, and civil society, formed over ADB’s 50 years of successful development assistance in diverse operating contexts
  • Credibility with host governments, private investors, and project developers, based on ADB’s AAA rating, reputation for prudent underwriting, and proven safeguard policies
  • Mitigated-risk financing through rigorous credit analysis and targeted risk reduction and management, offering attractive risk-adjusted returns
  • Multifaceted approach to service delivery, encompassing not only finance but also intellectual capital and other proprietary resources
  • Highly qualified team of banking and industry specialists drawn from the private sector
  • Organizational and staff presence in 31 regional, subregional, and country offices worldwide, allowing closer and sustained engagement with clients and direct involvement in country strategy planning, project administration, and risk management

Meet PSOD staff

Careers in Financing the Private Sector in Developing Asia and the Pacific

Are you interested in an exciting and rewarding career in financing and managing our exposure to private sector companies in developing Asia and the Pacific?

Are you intrigued by financing large scale energy and transport projects in the Mekong region, for example? Financing banks and other intermediaries in central Asia? Examining the best opportunities for private equity funds to invest in emerging markets?

ADB's Private Sector Operations Department (PSOD) is searching for project leaders and innovators in its mission to improve people’s lives in Asia and the Pacific through inclusive and environmentally sustainable economic growth. We are looking for exceptional project and corporate financiers, investors as well as specialists in key areas of development who can identify, structure and close innovative, development focused and financially robust debt, equity, and guarantee transactions. PSOD provides financing to private sector companies and project developers, as well as financial intermediaries, such as banks. We promote strong partnerships with private enterprises and other financing institutions to develop robust and highly developmental transactions in the Asia and Pacific region. To attract and mobilize financing, PSOD leverages its diversified financing modalities, scaling its various lending instruments and blended financing structures, among many others. PSOD also provides support through equity (direct and funds) and debt securities to selected high-growth platforms to fill in the financing needs of the market.

Working in PSOD can be quite a challenge. Not only do we have stringent credit requirements when we evaluate whether a financing proposal is commercially sustainable, we also examine the potential and measurable development impacts that a project can generate in a sector, country or region. We also work closely with clients to promote and enhance gender equity by supporting projects designed to benefit women. In 2019, PSOD signed 31 projects with gender elements to help women improve their livelihoods or make the work environment more supportive of women’s needs. And if a deal cannot generate tangible development results, then it simply does not meet the test of being an ADB financing opportunity. Beyond providing capital, ADB must add value in all transactions it undertakes.

ADB’s Board of Directors approved 35 nonsovereign projects for a total of $1.64 billion and PSOD signed 38 transactions for a total of $3.0 billion in 2019. The number of projects signed in 2019 is the highest achieved by PSOD to date but more are expected and planned for the years ahead in a growing set of countries and sectors.

The coronavirus disease (COVID-19) pandemic brought an unprecedented global health and economic crisis. Domestic outbreaks in many ADB developing member countries (DMCs) led to governments imposing lockdowns, which in turn affected consumption, investments, tourist arrivals, and trade. Since March 2020, our business focus has been reoriented to prioritize the COVID-19 response. We have shifted to supplying shorter-term liquidity and working capital support for direct1 and indirect2 COVID-19 response initiatives rather than providing term financing for infrastructure projects. On 13 April 2020, ADB tripled to $20 billion its initial package to address the immediate needs of its developing member countries as they respond to the COVID-19 pandemic, including increases to aggregate limits of PSOD’s Trade Finance Program, and Microfinance Risk Participation and Guarantee Program. ADB also approved measures to streamline its operations for quicker and more flexible delivery of assistance.

Learn more about how private sector financing is making a difference in Asia and the Pacific, our team, the Operational Plan for Private Sector Operations (2019-2024) and our overall corporate strategy.

We are expanding rapidly and looking for great talent to join our world-class team. Visit the ADB Career and Employment System (ACES) to apply for vacancies.

1 Direct COVID-19 response refers to financial support for healthcare and related supply chain/infrastructure.
2 Indirect COVID-19 response refers to financial support for companies providing essential services that have been affected by the pandemic’s economic fallout