Public Sector Financing

ADB offers a range of financing instruments, products, and modalities to provide developing member countries with flexibility in determining how they can achieve development results.

Lending and Grant Modalities

ADB's wide range of modalities meet the diverse and evolving needs of its developing member countries (DMCs).

Investment Lending Modalities

pay for goods, works, and services related to specific projects. Investment lending includes the project loan, sector loan, financial intermediation loan, emergency assistance loan, and multitranche financing facility.

Policy-Based Lending

provides general budget support to borrowers, helping countries facing a financing gap in their annual budget. PBL is disbursed only when the borrower completes policy reforms or actions that have been agreed with ADB.

Results-Based Lending

focuses on the positive change ADB’s support brings to beneficiaries. This modality supports government-owned programs through a performance-based form of financing.

Other Modalities

include project readiness financing, the small expenditure financing facility, PPP standby financing facility, and technical assistance.

LIBOR Transition Learn more

The global financial industry is undertaking a significant transformation with the phasing out of London interbank offered rate (LIBOR) and transition to alternative reference rates.

ADB is supporting borrowers through the 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 borrowers towards an orderly LIBOR transition and to safeguard its financial soundness.

The impact of COVID-19. The phasing out of LIBOR has not been delayed by COVID-19. Global financial regulators have reconfirmed market participants need to be prepared to transition away from LIBOR by the end of 2021.

On 23 March 2021, the Alternative Reference Rates Committee (ARRC) announced it will not be in a position to recommend a robust forward-looking Secured Overnight Financing Rate term rate by mid-2021, and cannot guarantee it will be able to do so by the end of 2021. The ARRC encourages all market participants to continue to transition from LIBOR using the tools available now.

How does ADB design and manage projects?

ADB provides financing for projects in DMCs that support economic growth and social development. Projects are identified in partnership with DMCs during strategic planning processes.

The various stages that each project goes through, from country programming, project design, to project completion, and evaluation are known collectively as the ADB project cycle.


Publications and Documents

  • Overview of ADB’s Flexible Loan Product for Sovereign and Sovereign-Guaranteed Borrowers

    Guides | Jul 2023

    Overview of ADB’s Flexible Loan Product for Sovereign and Sovereign-Guaranteed Borrowers

    This brochure presents the key features of Asian Development Bank Flexible Loan Product as well as basic terms and conditions to help the bank's sovereign and sovereign-guaranteed borrowers in making informed decisions.

  • 2022 Annual Portfolio Performance Report

    Statutory Reports and Official Records | Apr 2023

    2022 Annual Portfolio Performance Report

    The annual portfolio performance report (APPR) is a management report that details the state of the sovereign and nonsovereign portfolios of the Asian Development Bank (ADB).

  • Loan Disbursement Handbook 2022

    Guides | Oct 2022

    Loan Disbursement Handbook 2022

    This handbook is a compilation of ADB's disbursement policies, guidelines, procedures, and practices.

  • Partnering for Development: Donor Report 2018

    Statutory Reports and Official Records | May 2019

    Partnering for Development: Donor Report 2018

    This report showcases activities and results of financing partnerships of ADB in 2018. Stories illustrate how these partnerships have made a significant difference in the lives of the poor.