ADB Sets Record with $8.7B in Nonsovereign Cofinancing, Driving Asia-Pacific Growth

The Asian Development Bank (ADB) achieved a landmark in 2024 by mobilizing a record $8.7 billion in nonsovereign cofinancing, highlighting an era of unprecedented private sector involvement in advancing sustainable and inclusive development across Asia and the Pacific. This surge formed a key pillar of the bank’s broader cofinancing achievements, which totaled $14.9 billion for the year. Combined with ADB’s own commitment of $24.3 billion, the total development financing package reached a robust $39.2 billion—underlining the bank’s pivotal role in addressing regional development challenges through collaboration.

Surge in Private Sector Engagement

The rise in nonsovereign cofinancing signals stronger private sector engagement across multiple financial modalities. Long-term project cofinancing alone reached $3.4 billion, marking a 3.3% increase from 2023. Meanwhile, trade finance, supply chain support, and microfinance programs rose by 2.4%, pointing to a broader appetite for impact-driven investment in emerging markets.

Trade and supply chain finance, in particular, witnessed a dramatic increase in activity. The number of transactions jumped from 21,400 in 2023 to 27,600 in 2024, showcasing a surge in regional commerce and investment support mechanisms. These transactions enabled small and medium-sized enterprises (SMEs) to access capital, bridge cash flow gaps, and enhance their participation in global trade networks.

A standout project during the year was the Gulf Solar and Battery Energy Storage initiative in Thailand, which attracted $260 million in investment from ADB and an additional $529 million from cofinancing partners. This project exemplifies ADB’s approach to tackling climate change through scalable renewable energy investments, leveraging public-private partnerships to transform national energy sectors.

Strengthening Sovereign Operations with Global Partnerships

In addition to private sector-led efforts, ADB mobilized $6.2 billion in sovereign cofinancing to support national governments in improving infrastructure, social services, and climate resilience. These funds enabled the development and enhancement of key public systems across multiple countries.

Multilateral development partners remained the largest contributors, channeling $3.1 billion into 43 projects—making up 50% of all sovereign cofinancing. Bilateral development agencies also played a vital role, contributing $2.9 billion across 35 projects, reflecting a continued commitment from donor countries to aid economic and social development in Asia and the Pacific.

Transformative Impact Across Diverse Sectors

The Partnership Report 2024, launched at ADB’s 58th Annual Meeting in Milan, provides a comprehensive overview of the bank’s cofinancing strategies and their outcomes. The report details several impactful projects, such as:

• India: Expansion of early childcare and maternal health services, targeting underserved communities and reducing maternal mortality rates.

• Mongolia: Deployment of innovative disaster risk financing and insurance solutions to protect vulnerable populations from climate-induced shocks.

• Uzbekistan: Support for power sector reforms to enhance energy reliability, efficiency, and sustainability.

These projects reflect ADB’s multi-sectoral approach and its emphasis on sustainable development aligned with the United Nations Sustainable Development Goals (SDGs).

Trust Funds and Innovation Finance Catalyze Change

Trust funds continued to underpin many of ADB’s development initiatives. The Japan Fund for Prosperous and Resilient Asia and the Pacific supported 33 projects, focusing on resilience-building and socio-economic inclusion. Other vital contributors included:

• Republic of Korea e-Asia and Knowledge Partnership Fund – backing 17 projects centered on digital innovation and knowledge-sharing.

• High-Level Technology Fund – financing 14 projects with a focus on technological advancement in service delivery and infrastructure.

ADB’s innovation-focused funds also played a key role in supporting private sector innovation. The ADB Ventures Investment Fund 1 and the Leading Asia’s Private Infrastructure Fund 2 jointly backed 15 high-potential projects promoting green growth, digital solutions, and climate-smart infrastructure. These funds target early-stage startups and scalable models, catalyzing market-driven approaches to development.

A Vision for a Resilient Future

“Through bold actions, innovative solutions, and stronger partnerships, we are committed to driving progress, protecting the most vulnerable, and sustaining ecosystems for millions,” said Xinning Jia, ADB’s Director General for Strategy, Policy, and Partnerships. Her statement underscores ADB’s holistic development model, which blends financing, knowledge, and partnerships to address evolving regional challenges.

Importantly, two out of every five projects undertaken by ADB in 2024 were cofinanced, highlighting the centrality of partnerships in the bank’s operations. This cofinancing model not only augments available funding but also brings together diverse expertise and shared risk-taking among stakeholders.

ADB’s record-setting $8.7 billion in nonsovereign cofinancing in 2024 marks a strategic milestone in aligning private sector capital with public development goals. The strong performance across both sovereign and nonsovereign channels reflects deepening trust in ADB’s stewardship and its commitment to inclusive, sustainable, and climate-resilient growth. With robust partner engagement and targeted investments, the bank is well-positioned to continue its leadership in shaping a more prosperous future for Asia and the Pacific.