Trade-Related Financial Services > Asian Development Bank

Equity investments

Investment Fund Operations deliver private equity to Developing Member Countries (DMCs), which stimulates domestic market development and capacity-building and increases access to debt financing in its DMCs. Private equity is in high demand from ADB’s DMCs, and is a standard modality for investment within ADB’s peer institutions.

For more information: http://www.adb.org/PrivateSector/Finance/equity.asp

Loans and guarantees

ADB provides loans, without government guarantees, to private sector projects and enterprises. In general, these loans are denominated in the major international currencies. However, Local currency financing is also available in selected countries. Loans to private sector companies or projects may be co-financed by commercial banks and other development banks.

ADB’s guarantee instruments cover those risks that the private sector cannot easily absorb or manage on its own. Mitigating these risks can make a crucial difference in mobilizing debt funding for private sector projects.

For more information: http://www.adb.org/PrivateSector/Finance/guarantees.asp

B Loan (Complementary Financing Scheme)

B loans are funded by commercial lenders with ADB acting as “lender of record”. Although B loans do not provide co-financiers with recourse to ADB for debt service, such loans do enjoy the same privileges and immunities given to ADB direct loans.

For more information: http://www.adb.org/PrivateSector/Finance/com_financing.asp

Trade Finance Facilitation Program (TFFP)

Contact:

Steven Beck
Head, Trade Finance
Private Sector Operations 
Department
Tel: +632 632 6599
Fax: +632 636 2448
E-mail: sbeck@adb.org

ADB’s Trade Finance Facilitation Program which started operations in 2004- provides finance and guarantees through, and in conjunction with, international and developing member country banks to support trade transactions in developing nations. Realizing that access to trade finance in times of crisis is vital to cushioning the shock of the global downturn on international trade, ADB has expanded significantly the trade finance facilitation program to US$1 billion. This move is expected to generate up to $15 billion in trade support by the end of 2013.

The TFFP:

  • Provides guarantees to confirming banks and revolving credits to issuing banks located in DMCs
  • Enhances banks’ abilities to offer importers and exporters access to financial services
  • Works in partnership with the private sector to provide capacity, liquidity and stability to the trade finance system

For more information: http://www.adb.org/TradeFinance/default.asp