Private Sector (Nonsovereign) Financing

In the Spotlight

News Release

ADB, BIM Wind Sign $107 Million Financing Package to Support Wind Energy in Viet Nam

ADB signed a $107 million financing project with BIM Wind Power Joint Stock Company (BIM Wind) to support the operation of an 88-megawatt (MW) wind farm in Ninh Thuan province, Viet Nam.

News Release

ADB, NephroPlus Sign Loan for Dialysis Centers in Uzbekistan

ADB signed a financing package of up to $8.39 million with Nephrocare Health Services Central Asia to establish four dialysis centers as part of a PPP arrangement to enhance health care service delivery in Uzbekistan.

Video

Microfinance: Empowering Women to Rebuild Lives After Crisis

Watch how ADB facilitates the recovery of communities from conflict and COVID-19 pandemic by providing access to microfinance, and helps break gender barriers by empowering Filipino women to engage in income-generating activities.

Page

Women’s Finance Exchange

The Women’s Finance Exchange (WFX) is ADB's initiative to support financial institutions and their women borrowers through innovative solutions. The WFX aims to address challenges faced by women’s businesses in accessing suitable financial products, and works with partners to improve gender-responsive financing.

Climate Action and ADB's Private Sector Operations

Climate change presents immense and cross-cutting development challenges in Asia and the Pacific. Engaging the private sector to deliver climate solutions can promote economic growth and jobs and help to place the region on a low-carbon sustainable growth path.

Learn more about ADB as Asia and the Pacific's Climate Bank.

Video

Private Sector’s Critical Role in Combating Climate Change in Asia and the Pacific

By scaling up its support for the private sector, ADB is helping businesses deliver climate solutions that will help to place the region on a low-carbon sustainable growth path.

Photo Essay

In Southeast Asia, Private Investment in Clean Energy is Helping to Fight Climate Change

ADB’s private sector operations department partners with the private sector to find new ways to fill investment gaps for clean energy generation and distribution.

Video

Kazakhstan’s Emerging Solar Industry is Helping its Transition to a Green Economy

Milestone solar projects in Kazakhstan are expected to boost renewables in its energy mix. These projects are part of the country’s step to decarbonize its economy.

What is ADB doing about 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 private sector borrowers towards an orderly LIBOR transition and to safeguard its financial soundness.

Core Sectors and Focus Areas

Infrastructure

Catalyzing economic growth and social equity via energy, waste, water, transport, and telecommunications facilities.

Learn more

Financial Sectors and Capital Markets

Providing better access to higher-quality financial services across Asia's developing markets.

Learn more

Agribusiness

Promoting environmentally-friendly food production, processing, and distribution.

Learn more

Health and Education

Building human capital by expanding access to high quality and affordable schools and healthcare services and facilities.

Learn more

Business Development

Exploring, identifying, and designing new financing products that contribute to ADB’s long-term project pipeline.

Learn more

Financial Products

Loans and Debt

ADB offers hard currency loans, both senior and subordinated, as well as mezzanine financing. We also offer local currency loans in selective markets on a case to case basis. Interest rates and other terms vary, depending on a company’s or project’s needs and risks.

Equity Investments

ADB may invest directly in an enterprise. It offers financing through equity investments, including direct equity investments in the form of common shares, preferred stock, or convertibles. Equity investments in enterprises, especially financial institutions, occur before an initial public offering.

Guarantees

ADB extends guarantees for eligible projects which enable financing partners to transfer certain risks that they cannot easily absorb or manage on their own to ADB. Guarantees can be provided when ADB has a direct or indirect participation in a project or related sector, through a loan, equity investment or technical assistance.

Loan Syndication

ADB partners with commercial banks, impact investors, institutional investors, and development finance institutions to provide debt for projects though B loan, complementary financing scheme, and parallel loan structures.

Blended Finance

ADB’s blended concessional finance facilities focus on catalyzing transactions and mobilizing investment in high development impact areas of strategic importance to ADB, including climate and gender.

Technical Assistance

In addition to financial products, ADB also offers technical assistance (TA), on a selective basis, for public and private sector operations.

More on ADB's private sector financial products

Programs

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

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

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.