ADB reaches record $8.7b in nonsovereign cofinancing in 2024

The Asian Development Bank (ADB) mobilized a record $8.7 billion in nonsovereign cofinancing in 2024, underlining the growing role of private sector engagement in advancing development across Asia and the Pacific.

This milestone contributed to a total cofinancing amount of $14.9 billion for the year, complementing ADB’s own investment of $24.3 billion.

The year 2024 saw a broad-based growth across all nonsovereign cofinancing modalities. Long-term project cofinancing grew by 3.3% to $3.4 billion, while trade finance, supply chain, and microfinance programs rose 2.4%, said an ADB press release, reports BSS.

Transaction volumes in trade and supply chain finance jumped from 21,400 in 2023 to 27,600 deals in 2024, reflecting stronger demand.

A key project was the gulf solar and battery energy storage project in Thailand, backed by $260 million from ADB and $529 million from partners.

ADB mobilized $6.2 billion in sovereign cofinancing to support that supported sovereign operations, aiding governments in strengthening infrastructure, services, and resilience.

Multilateral partners were the leading contributors to sovereign cofinancing, providing $3.1 billion for 43 projects—accounting for 50% of sovereign cofinancing. Bilateral partners followed closely, contributing $2.9 billion across 35 projects.

The Partnership Report 2024, launched at ADB’s 58th Annual Meeting in Milan, highlighted how cofinancing supported a wide range of efforts—from early childcare and maternal health in India to disaster risk financing and insurance solutions in Mongolia to power sector reforms in Uzbekistan.

“Through bold actions, innovative solutions, and stronger partnerships, we are committed to driving progress, protecting the most vulnerable, and sustaining ecosystems for millions,” said ADB Strategy, Policy, and Partnerships Director General Xinning Jia.

“Together, we are building a stronger, more resilient future for Asia and the Pacific.” added Jia.

ADB collaborates with a diverse array of partners—including governments, multilateral institutions, and private investors—to address complex challenges such as poverty, environmental degradation, and access to basic services.

In 2024, two in every five ADB projects were funded jointly by ADB and its partners, showing how central partnerships are to its development approach.

Trust funds also played a key role. The Japan Fund for Prosperous and Resilient Asia and the Pacific supported 33 projects.

The Republic of Korea e-Asia and Knowledge Partnership Fund and the High-Level Technology Fund backed 17 and 14 projects.

In the private sector, ADB Ventures Investment Fund 1 and Leading Asia’s Private Infrastructure Fund 2 provided early-stage and long-term financing to 15 projects promoting innovation and green growth.

ADB also forged new partnerships in 2024 to expand its impact, including with the South Asian Association for Regional Cooperation Development Fund to support economic growth and poverty alleviation in South Asia.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.

Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet.

Founded in 1966, ADB is owned by 69 members—50 from Asia and Pacific region.