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Private Sector (Nonsovereign) Financing

ADB focuses on projects that help promote private investments in the region that will have significant development impact and will lead to accelerated, sustainable, and inclusive growth.

In the Spotlight


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

ADB is bringing new resources and new ideas to the fight against climate change. Through its private sector operations, ADB plays a major role in financing path-breaking private sector projects on climate.


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.


Q&A: Financing Asian Development with ADB’s Vice President for Private Sector Operations and PPPs, Ashok Lavasa

COVID-19 continues to shine a harsh light on the world’s infrastructure deficits. As a result, the role of multilateral development organizations, as well as the private sector, is more important than ever to help stimulate economies.


How Private Sector Financing is Making a Difference in Asia and the Pacific

ADB's private sector operations bridge the gap between private financing and development in Asia and the Pacific.

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.

More on LIBOR Transition

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.


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.


Climatic Episode 2.1: Electric Mobility Talk Show

The latest ADB Ventures Climatic talk show takes a close look at the booming Asia Pacific EV market and its potential to help the region achieve net-zero carbon emissions.

Core Sectors and Focus Areas



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

Financial Sectors and Capital Markets

Financial Sectors and Capital Markets

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



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

Health and Education

Health and Education

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

Financial Products

Loan/Debt Security

Direct loans at market-based rates, B-loans, and unfunded risk participations.

Equity Investments

Direct investments in common shares, preferred stock, or convertibles; investments in private equity funds.


Protection against political and credit risks.

Technical Assistance

Collaborative support for project implementation, institutional capacity building, economic stability, and inclusive growth; attractively priced and structured financing from third-party sources for specific industries or geographic areas.


Commercial Cofinancing

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

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

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.

6. Closing

Following the Management or Board approval, the documentation for the transaction is finalized and signed.

Project Results

Project Result / Case Study

Investing in Asia’s maiden green bonds

Green bonds are an increasingly viable option for investors in Asia, like pension and superannuation funds, looking to get involved in green sustainable financing.

Project Result / Case Study

Indonesia: Muara Laboh Geothermal Power

This project involves a $70 million loan from ADB with $19.25 million Clean Technology Fund (CTF) concessional financing and a $20 million parallel loan funded through Leading Asia's Private Sector Infrastructure (LEAP) Fund.

Project Result / Case Study

People's Republic of China (PRC): Sustainable Dairy Farming and Milk Safety

ADB will provide a $62.5 million yuan loan to Inner Mongolia Saikexing Breeding and Biotechnology Group (SKX) and will act as the lender of record for the participation of selected commercial banks of up to $62.5 million equivalent in yuan.

News and Resources