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.
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:
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.
Group A: Concessional Assistance-only | OCR Blend | |||
---|---|---|---|---|
ADF-eligible | COL-only Gapa | |||
ADF-only (100% grant) | ADF Blend (50% grant) | COL-only (0% grant) | ||
Afghanistan* Federated States of Micronesia σ Kiribati* σ Marshall Islands σ Nauru σ Samoa σ Tajikistan Tonga σ Tuvalu* σ |
Kyrgyz Republic Maldives σ Solomon Islands* σ Vanuatu σ |
Nepal* |
Bhutan* |
Bangladesh*
|
C0 SIDS below the IBRD income cutoff and new group C |
C1 SIDS above the IBRD income cutoff and LMICs |
C2 UMICs below the IBRD income cutoff |
C3 UMICs above the IBRD income cutoff |
C4 High-income countries |
---|---|---|---|---|
Indiab Indonesia Philippines Sri Lanka Viet Nam |
Armenia Azerbaijan Georgia Thailand Turkmenistan |
Kazakhstan Malaysia 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.
Maturity | Grace Period | Interest | Other Features | |
---|---|---|---|---|
Group A (CA-only): 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): 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) | 25 yrs | 5 yrs | 2% interest per year | Equal amortization; 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 |
Item | (in basis points) | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
A. Interest Spread | |||||||||||||||||||||||||||||||
1. Effective Contractual Spread | 50 | ||||||||||||||||||||||||||||||
2. (Rebate) / Surcharge on Funding Cost Margin* | Applicable 1 January-30 June 2023 USD: 19 JPY: (33) EUR: 2 NZD: 52 |
||||||||||||||||||||||||||||||
3. Maturity Premium |
|
||||||||||||||||||||||||||||||
4. Net Spread Over Reference Rate (1+2+3)* | USD: 69 to 144 JPY: 17 to 92 EUR: 52 to 127 NZD: 102 to 177 |
||||||||||||||||||||||||||||||
B. Commitment Charge (based on the undisbursed balance of the loan) |
15 |
* Determined semi-annually and applied to the outstanding FLP sovereign loans for the applicable period.
Notes: FLPs have a maximum average maturity limit of 19 years. 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.
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%).
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 1 June 2023.
For inquiries, please email the Treasury Department