Investor Presentaiton
Modalities
Instrument
Typical Size
.
Debt
$20M - $500M
Equity
$2M - $100M
Guarantees
$20M - $500M
Typical terms
7 years (corporate) to 15+ years (project)
LIBOR/ADB cost of fund in local currency +
credit spread
• Secured or unsecured
•
When is it relevant?
Established
company
with large balance sheet, strong
cash flow
Possibility to mobilize co-financing under B Loan or risk
participation
Growing company in a pre-IPO or pre-trade sale
situation
25% ownership maximum
• Board seat
Minority protection rights
Put on the parent company
• Partial credit guarantees (PCG): market-
based, fees based off lenders' margin
• Partial risk guarantees (PRG): market-based,
fees based off reinsurance market
•
•
Long-term loan at concessional interest
rates to be "blended" with ADB financing
First-loss cover
For project preparation TA, reimbursable at
closing
• For capacity development TA, non-
reimbursable grant
• Where other lenders are more efficient than ADB in
mobilizing local currency, or reaching target
customers (PCG)
⚫ In frontier markets (PRG)
Whenever donor funds managed by ADB are available
Applicable for climate mitigation and adaptation
projects or low-income countries
• For projects in need of additional, concessional
financial assistance
Donor
Funding
$5M - $10M
.
Technical
Assistance
$0.5M -$1M
7 October 2019
19
ADBView entire presentation