Commercial Cofinancing for Nonsovereign Projects

Partnerships with the private sector are crucial to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region.

Cofinancing amplifies the impact of ADB’s private sector operations by attracting financing from other parties, facilitating investment, trade, and capital flows into developing member countries. Both private and public institutions provide commercial cofinancing to ADB’s nonsovereign projects – funds are usually sourced from financial markets and priced at commercial terms. Such arrangements are particularly effective for projects and programs that would be considered risky without ADB involvement.

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.