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 Policies and Rates

Lending Policies

ADB’s lending policies

ADB's Classification and Graduation Policy determines the eligibility of developing member countries (DMCs) to borrow based on two main criteria, (i) per capita income and (ii) creditworthiness. DMCs are classified into:

  • Group A (Concessional assistance-only): those in need of greatest concessionality and eligible for Asian Development Fund (ADF) grants
  • Group B  (OCR blend): those that need some concessionality, and
  • Group C (Regular OCR only): those in need of least concessionality.

DMCs within these groups are further differentiated to determine the mix of funds and lending terms they can access, based on ADB’s (i) concessional assistance policy and (ii) policy on diversified financing terms.

Classification of DMCs in 2024Download PDF version

Concessional Assistance Countries

Regular OCR only Countries

SIDS below the IBRD income cutoff and new group C
LMICs and SIDS above the IBRD income cutoff
UMICs below the IBRD income cutoff
UMICs above the IBRD income cutoff
High-income countries
Viet Nam
People’s Republic of China

* = least developed, σ = small island developing states, ADF = Asian Development Fund, COL = concessional OCR lending, IBRD = International Bank for Reconstruction and Development, Lao PDR = Lao People’s Democratic Republic, LMICs = lower middle-income countries, OCR = ordinary capital resources, SIDS = small island developing states; UMICs = upper middle-income countries.

a COL-only gap countries, as designated by the International Development Association (IDA).
b Group B with no access to concessional assistance.

Developing members: Afghanistan; Armenia; Azerbaijan; Bangladesh; Bhutan; Brunei Darussalam; Cambodia; People’s Republic of China; Cook Islands; Georgia; India; Indonesia; Fiji; Hong Kong, China; Kazakhstan; Kiribati; Republic of Korea; Kyrgyz Republic; Lao People’s Democratic Republic; Malaysia; Maldives; Marshall Islands; Federated States of Micronesia; Mongolia; Myanmar; Nauru; Nepal; Niue; Pakistan; Palau; Papua New Guinea; Philippines; Samoa; Singapore; Solomon Islands; Sri Lanka; Taipei,China; Tajikistan; Thailand; Timor-Leste; Tonga; Turkmenistan; Tuvalu; Uzbekistan; Vanuatu; Viet Nam.

By making any designation of or reference to a particular territory or geographical area, or by using the term "country" in the website, ADB does not intend to make any judgment as to the legal or other status of any territory or area. Boundaries, colors, denominations or any other information shown on maps do not imply, on the part of ADB, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.


Terms and conditions of ADB's concessional loans

  Maturity Grace Period Interest Other Features
Group A (CA-only), non-SIDS: Project Loans 32 yrs 8 yrs 1% during the grace period
1.5% during the amortization period
Equal amortization; No commitment fee
Group A (CA-only), non-SIDS: Policy-based Loans 24 yrs 8 yrs 1% during the grace period
1.5% during the amortization period
Equal amortization; No commitment fee
Group B (OCR blend), non-SIDS 25 yrs 5 yrs 2% interest per year Equal amortization; No commitment fee
Group A (CA-only) and Group B (OCR blend), SIDS 40 yrs 10 yrs 1% interest per year Principal repayment at 2% per year for the first 10 years after the grace period and 4% per year thereafter; No commitment fee
Emergency Assistance Loans 40 yrs 10 yrs 1% interest per year Principal repayment at 2% per year for the first 10 years after the grace period and 4% per year thereafter; No commitment fee

ADB Loan Charges for Regular OCR Flexible Loan Product (FLP)

Item (basis point)
A. Interest Spread  
1. Effective Contractual Spread 50
2. (Rebate) / Surcharge on Funding Cost Margin* Applicable 1 January-30 June 2024
USD: 30
JPY: (29)
EUR: 5
NZD: 52
3. Maturity Premium
Average Maturity C0 B & C1 C2 C3 C4
< 9 years 0 0 0 0 0
9 years to 13 years 0 0 10 20 40
> 13 years to 16 years 0 10 20 30 50
> 16 years to 19 years 0 20 30 50 75
4. Net Spread Over Reference Rate (1+2+3)* USD: 80 to 155
JPY: 21 to 96
EUR: 55 to 130
NZD: 102 to 177
B. Commitment Charge
(based on the undisbursed balance of the loan)

* Determined semi-annually and applied to the outstanding FLP sovereign loans for the applicable period.


  1. FLPs have a maximum average maturity limit of 19 years.
  2. C0 refers to groups receiving zero maturity premium, which include small island developing states below the IBRD income cutoff and new regular ordinary capital resources-only members in transition.
  3. Average loan maturity is the average number of years to repay, weighted by repayment amounts. For example, a 20-year loan with 2 equal repayments in years 10 and 20 will have an average maturity of 15 years (10 x 50% + 20 x 50%).
  4. The funding cost margins for loans under the Countercyclical Support Facility (CF) and COVID-19 Pandemic Response Option (CPRO) are available in the Revised Lending Rates and Funding Cost Margins for the Asian Development Bank's Loan Products (January-June 2024).

Indicative Lending Rates for Flexible Loan Product

ADB provides indicative lending rates as a service to borrowers for loans under the Flexible Loan Product (FLP) and foreign exchange rates. The rates are as of 13 June 2024.

For inquiries, please email the Treasury Department