Skip to Navigation (press enter) <#primary-menu> Skip to Content (press enter) <#content> * * * * * Home </main> Careers </site/careers/main> Site

Index </site-index> Contacts </contacts/main> What's New </whats-new>

*Stay Connected:* Twitter <http://twitter.com/adb_manila> YouTube <http://www.youtube.com/user/AsianDevelopmentBank> Scribd <http://www.scribd.com/AsianDevelopmentBank> Facebook <http://www.facebook.com/pages/Asian-Development-Bank/353576190962> Flickr <http://flickr.com/asiandevelopmentbank> RSS </rss> Asian Development Bank (ADB) </> Advanced Search <http://ss.adb.org/?type=advanced> * About ADB </about> o Organization o o o o o o o o o o o o o o Overview </about/overview> Key Facts </about/key-facts> Members </about/members> Board of Governors </about/board-governors> Board of Directors </about/board-directors> Management </about/management> Departments and Offices </about/departments-offices> Policies and Strategies </about/policies-and-strategies> Partners </about/partners> Annual Meetings </about/annual-meetings> FAQs </about/faqs> Independent Evaluation <http://www.adb.org/Evaluation/>

Financing Operations o o o o o o o Public Sector (Sovereign) Financing </public-sector-financing> Private Sector (Nonsovereign) Financing </private-sector-financing> Funds and Resources </funds/> Asian Development Fund </adf/> Investor Information </investors/>

Opportunities o Careers <http://beta.adb.org/careers> o Business Opportunities <http://www.adb.org/business/opportunities> o

Other Focus Areas o Accountability Mechanism </accountability-mechanism> o Accountability Mechanism Review <http://www.adb.org/AM-Review/> o ADB and Civil Society </ngos/> o Anticorruption and Integrity </integrity/> o Development Effectiveness and Results </development-effectiveness/> o Disclosure </disclosure> o Knowledge Management </knowledge-management> o Safeguards </safeguards> * News & Events </news> o News o o o o o News Releases </news/releases> Briefs: Loans and Technical Assistance </news/briefs> Speeches </news/speeches> Op-Eds and Opinion </news/op-ed> Features </features/>

o Events o Calendar of Events </news/events/calendar> o Manila 2012: 45th Annual Meeting <http://www.adb.org/AnnualMeeting/2012/default.asp> o Multimedia o Highlights </news/media> o Videos </news/media/videos> o Photo Essays </news/media/photo-essays> o Podcasts </news/media/podcasts> o Photos for Download </photos-download> o o ADB Experts </news/experts> o Contacts </news/contacts/> * Data & Research </data> o Research at ADB o Publications </data/publications> o Statistics and Databases </data/statistics> o Seminars and Lectures </data/seminars> o Links </data/links> o Contacts </data/contacts> * Publications </publications> o

Publications o Search/Browse Publications </publications/search> o How to Order </publications/ordering> o Public Information Center </publications/pic> o Depository Libraries </publications/depositories> o o Translations </publications/translations> * Sectors & Themes </sectors> o Sectors o o o o o o o o o o o o Agriculture </agriculture> Education </education> Energy </energy> Finance </finance> Health </health> Industry and Trade </industry-and-trade> Information and Communication Technology </ict> Public Sector Management </governance> Social Protection </social-protection> Transport </transport> Water <http://www.adb.org/Water/>

Themes o Capacity Development </capacity-Development> o Climate Change </climate-change> o Environmental Sustainability </environment> o Gender and Development </gender> o Governance </governance> o Poverty Reduction <http://www.adb.org/Poverty/> o Private Sector Development </private-sector-development> o Regional Cooperation and Integration </regional-cooperation> o Social Development </social-development> o Urban Development </urban-development> * Projects <http://www.adb.org/Projects/> o Projects o Websites <http://www.adb.org/Projects/proj_websites.asp> o Project Cycle <http://www.adb.org/Projects/cycle.asp> o Administration <http://www.adb.org/Documents/Manuals/PAI/default.asp> o Search/Browse o Search Project Database <http://www.adb.org/Projects/summaries.asp> o Search Project Documents <http://www.adb.org/Projects/reports.asp> o Show All Projects <http://www.adb.org/Projects/summaries.asp?browse=1> o Show Recently Approved Projects

<http://www.adb.org/Projects/summaries.asp?query=&browse=1&mode=1&ctry=A LL&stat=2&year=ALL> * Countries </countries/> o Subregional Programs o Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) </bimp-eaga/> o Central Asia Regional Economic Cooperation (CAREC) </carec/> o Greater Mekong Subregion (GMS) </gms/> o Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) </imt-gt/> o o Other Offices o o o o o o European Representative Office </ero/> Japanese Representative Office </jro/> North American Representative Office </naro/> Pacific Liaison and Coordination Office </plco/> South Pacific Subregional Office </spso/>

Countries with Operations o o o o o o o o o o o o o o o Afghanistan </afghanistan/> Armenia </armenia/> Azerbaijan </azerbaijan/> Bangladesh </bangladesh/> Bhutan </bhutan/> Cambodia </cambodia/> China, People's Republic of </prc/> Cook Islands </cook-islands/> Fiji </fiji/> Georgia </georgia/> India </india/> Indonesia </indonesia/> Kazakhstan </kazakhstan/> Kiribati </kiribati/>

o o o o o o o o o o o o

Kyrgyz Republic </kyrgyz-republic/> Lao PDR </lao-pdr/> Malaysia </malaysia/> Maldives </maldives/> Marshall Islands </marshall-islands/> Micronesia, Federated States of </micronesia/> Mongolia </mongolia/> Myanmar </myanmar/> Nauru </nauru/> Nepal </nepal/> Pakistan </pakistan/> Palau </palau/>

o Papua New Guinea </papua-new-guinea/> o Philippines </philippines/> o

o o o o o o o o o o o o o o

Samoa </samoa/> Solomon Islands </solomon-islands/> Sri Lanka </sri-lanka/> Tajikistan </tajikistan/> Thailand </thailand/> Timor-Leste </timor-leste/> Tonga </tonga/> Turkmenistan </turkmenistan/> Tuvalu </tuvalu/> Uzbekistan </uzbekistan/> Vanuatu </vanuatu/> Viet Nam </viet-nam/> Country Documents </countries/documents/>

* </index> * Private Sector Financing </site/private-sector-financing> * Financial Products Print <http://beta.adb.org/print/site/private-sector-financing/financial-products>Shar eThis <javascript:void(0)> Private Sector Financing Navigation * * * * * * * * * * * * Main </site/private-sector-financing/main> Overview </site/private-sector-financing/overview> Core Sectors </site/private-sector-financing/core-sectors> Financial Products </site/private-sector-financing/financial-products> Commercial Cofinancing </site/private-sector-financing/commercial-cofinancing> Project Approval Process </site/private-sector-financing/project-approval-process> Applying for Assistance </site/private-sector-financing/applying-assistance> FAQs </site/private-sector-financing/faqs> News </site/private-sector-financing/news> India Solar Generation Guarantee Facility </site/private-sector-financing/india-solar-generation-guarantee-facility> Trade Finance Program </site/private-sector-financing/trade-finance-program> Contacts </site/private-sector-financing/contacts>

Financial Products ADB catalyzes private investments through direct financing, credit enhancements, and risk mitigation instruments. ADB provides direct

funding assistance through loans and equity investments. We offer political risk guarantee and partial credit guarantee instruments to enhance the risk profiles of transactions to attract both foreign and local commercial lenders to projects in the developing member countries (DMCs), and to encourage them. Through cofinancing and guarantees, we also support local investors, domestic banks, and financial institutions to provide funds on suitable terms for ADB-assisted development projects. ADB also mobilizes additional resources for projects through a "B-loan" arrangement. Loans 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 companys or projects needs and risks. * *Rates* - In pricing its loans, ADB considers prevailing market rates in the relevant country and sector, factoring in country and transaction risks. ADB provides floating rate loans at a spread above the London interbank offered rate (LIBOR) or Euro interbank rate, depending on the currency. It also offers fixedrate loans at the fixed-rate swap equivalent of floating-rate loans. * *Fees* - Market-based fees are charged. Typically, on floating-rate loans, ADB charges a once-only front-end fee as well as an ongoing commitment fee on the undisbursed balance. We may also charge a fee to cover upfront costs associated with due diligence. Project sponsors or clients will reimburse out-ofpocket expenses, such as travel and external advisory services (i.e., legal counsel, technical consultants, and environmental and insurance advisors, if any). * *Security *- We will seek security appropriate for the loan and type of financing. 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. ADB does not seek a controlling interest in an investee company, and will not assume any management responsibilities. It will, however, typically wish to reserve the right to appoint a nominee or an observer to the board of directors of each of its investee companies and to selected board committees, and will exercise voting rights as a shareholder. It will maintain regular contact with company management and require periodic reports on the progress of capital projects, operating performance, financial condition of the enterprise, and economic value added. ADB also requires reports on specific indicators for development outputs and outcomes, and monitors continued compliance its environmental and social safeguards. Once the objective of its investment has been achieved, ADB will divest its shares at a fair market price. Facilitating this divestment may require the eventual listing of the shares of the investee enterprises on one or more stock exchanges, conducting a trade sale or entering into a suitable buyback

agreement. In general, ADB prefers to sell shares to the nationals of the host country to broaden local ownership and further develop local capital markets. When disposing of its shares, ADB will endeavor to consult with its major investment partners and give due consideration to their views, without being precluded from disposing of its investments at its sole discretion. ADB may also invest in a private equity fund, up to certain exposure limits. ADB will reserve the right to appoint a nominee to the advisory board of the fund. It will maintain frequent contact with the fund manager and require detailed quarterly reports on the fund managers investment, monitoring, value addition, and, eventually, divestment progress. With the same frequency, ADB will closely monitor financial performance as measured by net asset value. ADB makes long-term commitments of capital to private equity funds, in keeping with the long-term lifecycle of such investments, and ordinarily stays invested as a shareholder or limited partner through the life of the fund. Guarantees ADB provides guarantees that can be used to cover political risks, and more comprehensively, both political and credit risks. B-loan/Lender of record ADB can mobilize additional debt resources for a financing through an arrangement in the form of a B-loan/Lender of Record structure. Technical assistance In addition to financial products, ADB also offers technical assistance (TA), on a selective basis, for public and private sector operations. This may include the following: * *Capacity Development TA * This assistance offers to undertake institutional and organizational capacity development and to support the implementation, operation, and management of ADB financed projects. * *Project Preparatory TA* This assistance helps in preparing public sector projects for financing by ADB and/or other external sources. * *Policy and Advisory TA * This assistance helps the public sector by financing sector , policy , and issues oriented studies. * *Research and Development TA* This assistance helps strengthen ADBs role as a knowledge platform to address development issues of a global or Asiaand Pacific wide nature. * *Regional TA* This assistance helps in project preparation, policy advice, or capacity development for operations covering more than one country specific borrower. Research and development is by ADB definition considered a regional activity. * *Small scale TA* This assistance is defined by its size, for amounts up to $225,000, and employs streamlined processing. For inquiries and clarifications, contact us </email/16981/field_email>. Related documents ADB 2010 Annual Report (Nonsovereign Operations)

</sites/default/files/adb ar2010 v1.pdf#page=93> ADB Financial Profile 2011 </documents/adb financial profile 2011?ref=site/private sector financing/publica tions> ADB Private Sector Operations: Innovation, Impact, Integrity </publications/adb private sector operations innovation impact integrity?ref=sit e/private sector financing/publications> Development Effectiveness Report 2009: Private Sector Operations </documents/development effectiveness report 2009 private sector operations?ref= site/private sector financing/publications> Summary of ADB s Nonsovereign Operations (2010) </publications/summary adbs nonsovereign operations 2010?ref=site/private sector financing/publications> Trade Finance Program </site/private sector financing/trade finance program>

* * * * * * *

*Other ADB Sites* ADB Compliance Review Panel <http://compliance.adb.org/> ADB Institute <http://www.adbi.org/> Asia Regional Integration Center <http://aric.adb.org/> Asian Bonds Online <http://asianbondsonline.adb.org/> Asian International Economists Network <http://aienetwork.org/> CN.ADB.org() <http://cn.adb.org/>

*Asian Development Bank* Headquarters: 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines Tel: + 63 2 632 4444 Fax: + 63 2 636 2444 Contacts </contacts> *e Alerts* Sign up to our e mail alerts <http://mms.adb.org/e notification/> or subscribe to our RSS feeds </rss> to get the latest information from ADB.

* * * * * * *

*Resources for* Bond Investors </investors> Businesses </business opportunities> Civil Society </ngos> Job Seekers </careers> Journalists </news> Private Sector Project Investors </private sector financing>

Copyright 2012 Asian Development Bank. Return to top <#page>

Terms of Use </terms use>