;697 { January 2015 Statement of the Asian Development Bank’s Operations in 2014 This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011.
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
;697 {
January 2015
Statement of the Asian Development Bank’s Operations in 2014
This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011.
I. OVERVIEW OF OPERATIONS
1. In 2014, Asian Development Bank’s (ADB) operations totaled $22.93 billion, $13.69 billion financed by ADB and Special Funds and $9.24 billion by cofinancing partners. The total $13.69 billion consists of (i) $12.92 billion in loans, (ii) $20 million in guarantees, (iii) $185 million in equity investments, (iv) $405 million in grants, and (v) $159 million in technical assistance (TA). 2. The top five recipients including cofinancing are India ($3.46 billion), Pakistan ($3.03 billion), People’s Republic of China ($2.76 billion), Viet Nam ($2.36 billion), and Indonesia ($1.76 billion). Excluding cofinancing, the top five recipients are as follows: India ($2.93 billion), People’s Republic of China ($1.84 billion), Pakistan ($1.39 billion), Viet Nam ($1.15 billion), and Philippines ($0.98 billion).
II. APPROVALS BY FINANCING SOURCE
3. Table 1 provides details on approvals by financing source. Projects funded from ordinary capital resources (OCR) amounted to $10.44 billion or 76% of the total ADB approvals of $13.69 billion ($14.35 billion in 2013). The remaining 24% is accounted for by special fund resources which include among others, Asian Development Fund and TA Special Funds. Appendix 1 provides a breakdown of financing source approved by country and by region. Appendix 2 provides a glossary of technical terms relating to the ADB operations.
Table 1: Approvals by Financing Source, 2013–2014 ($ million)
0 = $0.2 million. 1
Based on adjustments to the Statement of Operations 2013 circulated in February 2014. The 2013 adjusted figures exclude dropped or cancelled loans, grants, equities, guarantees and technical assistance prior to signing.
2 The 2014 figures include $10.0 million classified as debt securities in financial statements in accordance with accounting standards.
3 Includes both investment and policy-based grants.
20131
2014
Ordinary Capital Resources 10,335 10,438
Loans 10,158 10,233
Guarantees 35 20
Equity Investments2 142 185
Special Funds Resources 4,011 3,250
Asian Development Fund 3,850 3,091
Loans 3,008 2,686
Grants 843 405
Technical Assistance Special Fund 148 152
Other Special Funds 14 7
Grants3
7 0
Technical Assistance Grants 7 7
Subtotal 14,346 13,688
Cofinancing 6,645 9,237
Project Cofinancing 6,367 9,093
Technical Assistance Cofinancing 278 144
TOTAL 20,991 22,925
2
4. A total of $9.24 billion cofinancing was generated in 2014 ($6.64 billion in 2013), of which 98% ($9.09 billion) was for project cofinancing and 2% ($144 million) was for technical assistance projects.
Table 2: Direct Value Added1 Cofinancing, 2013–2014 ($ million)
- = nil 1 Cofinancing which involves active coordination and formal agreements among financing partners that bring about defined client benefits.
2 In 2014, includes $437.28 million of other concessional cofinancing from private sector through foundations, corporate social responsibility programs, civil society organizations, and any other sources that do not fall under official or commercial cofinancing categories.
3 Includes US$ and local currency complementary loans. 4 In 2014, TFP had an annual turnover (or gross DVA) of $3.83 billion, of which $2.04 billion was co-financed and $1.79 billion was for ADB’s own account.
5 For loans provided by third parties and not fully guaranteed by ADB, such as partial credit guarantees or partial risk guarantees, the portion of loans that is not guaranteed by ADB is considered as net DVA cofinancing and reported in the year of signing the guarantee agreements.
6 This refers to the amount of OCR allocation relief as a result of risk transfer arrangements, whereby a third party assumes risk under a guarantee or loan provided by ADB. The amount of allocation relief depends on the risk rating and nature of the counterparty.
7 In 2014, includes $3.64 million of other concessional cofinancing.
III. Approvals by Sovereign and Nonsovereign
5. In 2014, sovereign approvals amounted to $15.99 billion, a decrease of $0.46 billion (3%) compared to 2013 due mainly to the decrease in loan and grant approvals. Nonsovereign approvals increased by $2.39 billion (53%) largely due to increase in loans and commercial cofinancing through B Loans, parallel loans and parallel equity.
2013 2014
Project Cofinancing 6,367 9,093
Official Cofinancing2
3,570 4,284
Loans 3,088 3,873
Grants 482 316
Equity - 94
Commercial Cofinancing 2,797 4,809
B Loans3
220 863
Parallel Loans 109 1,503
Parallel Equity - 340
TFP cofinancing4
2,279 2,039
Guarantee Cofinancing5
75 8
Risk Transfer6
113 56
Technical Assistance Cofinancing7
278 144
TOTAL 6,645 9,237
3
Table 3: Sovereign and Nonsovereign1 Approvals, 2013–2014 ($ million)
- = nil 1 ADB-financed nonsovereign approvals include nonsovereign public and private sector loans, equity investments, guarantees, and technical assistance.
2 The 2014 figures include $10.0 million classified as debt securities in financial statements in accordance with accounting standards.
3 Includes US$ and local currency complementary loans.
2013 2014
Sovereign 16,450 15,990
Loans 11,740 11,205
Grants 849 405
Technical Assistance 149 148
Cofinancing
Official 3,435 4,090
TA Cofinancing 277 142
Nonsovereign 4,541 6,935
Loans 1,425 1,714
Equity Investments2 142 185
Guarantees 35 20
Technical Assistance 6 11
Official Cofinancing 135 194
Commercial Cofinancing
B Loans3
220 863
Parallel Loans 109 1,503
Parallel Equity - 340
TA Cofinancing 1 2
TFP Cofinancing 2,279 2,039
Guarantee Cofinancing 75 8
Risk Transfer 113 56
TOTAL 20,991 22,925
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Sovereign Nonsovereign
Figure 1: 2014 Sovereign and Nonsovereign Approvals
($ million)
Cofinancing
Technical Assistance
Guarantees
Grants
Equity Investments
Loans
4
6. Of the $6.94 billion nonsovereign approvals in 2014, all were from private sector operations in the form of loans, equity investments, guarantees, technical assistance, B loans, parallel loans, and cofinancing except $0.2 million from the nonsovereign public sector technical assistance.
Table 4: Nonsovereign Approvals, 2013–2014 ($ million)
- = nil, 0 = $0.2 million. 1 Refers to nonsovereign loans, guarantees, B loans and risk transfer to or for
enterprises that are majority owned by public parties (defined as entities with more than 50% of their capital held publicly).
2 The 2014 figures include $10.0 million classified as debt securities in financial statements in accordance with accounting standards.
3 Includes US$ and local currency complementary loans.
2013 2014
Public1
113 0
Risk Transfer 113 -
Technical Assistance - 0
Private 4,428 6,935
Loans 1,425 1,714
Equity Investments2
142 185
Guarantees 35 20
Technical Assistance 6 11
Official Cofinancing 135 194
B Loans3
220 863
Parallel Loans 109 1,503
Parallel Equity - 340
TA Cofinancing 1 2
TFP Cofinancing 2,279 2,039
Guarantee Cofinancing 75 8
Risk Transfer - 56
TOTAL 4,541 6,935
5
IV. Approvals by Modality Including Cofinancing
7. Of the $22.93 billion approved in 2014, 82% ($18.90 billion) was for investment support, 16% ($3.73 billion) for policy-based support, and 1% ($303 million) for technical assistance.
Table 5: Approvals by Modality, 2013–2014 ($ million)
1 Refers to other special funds and project cofinancing. 2 Refers to programs.
2013 2014
Investment Support 18,675 18,897
OCR 9,935 8,832
ADF 3,067 2,371
Others1 5,673 7,694
Policy-Based Support2
1,883 3,725
OCR 400 1,606
ADF 783 720
Others1
700 1,399
Technical and Advisory Support 433 303
TOTAL 20,991 22,925
6
V. Multitranche Financing Facility (MFF) and Tranche Approvals 8. Nine MFFs totaling $3.81 billion and 28 tranches totaling $3.80 billion were approved in 2014, compared with five MFFs ($2.57 billion) and 28 tranches ($4.56 billion) in 2013. This is an increase of 48% ($1.24 billion) for MFFs and a decrease of 17% ($759 million) for tranches.
Table 6: Multitranche Financing Facility and Tranche Approvals 2013–2014 ($ million)
1 Refers to other special funds and project cofinancing. 2 The total of all MFF tranches approved during the year.
2013 2014
Multitranche Financing Facility 2,568 3,812
OCR 1,504 2,507
ADF 556 798
Others1
508 507
MFF Tranches2
4,556 3,797
Loans 4,160 3,640
OCR 2,997 2,952
ADF 326 314
Others1
837 374
Grants 396 157
ADF 369 109
Others1 27 48
Appendix 1 7
Approvals by Country, 2014 ($ million)
ADB = Asian Development Bank, ADF = Asian Development Fund, OCR = ordinary capital resources, TASF = technical assistance special funds. Note: Figures may not add up because of rounding. 1 Includes $10.0 million classified as debt securities in financial statements in accordance with accounting standards.
Loans GuaranteesEquity
Investments1 Loans Grants TASF Grants
TA
Grants
Project
Cofinancing
TA
Cofinancing
Central and West Asia 1,769.0 - 3.0 784.3 295.8 19.9 - 1.2 2,328.9 5.7 5,207.8
Afghanistan - - - - 149.0 2.0 - - 37.7 1.0 189.6
Armenia - - - 86.0 - 0.9 - - 38.8 0.1 125.8
Azerbaijan 315.0 - - - - 4.1 - 0.7 - 0.6 320.4
Georgia 199.0 - - 59.0 - 1.3 - - 107.2 - 366.5
Kazakhstan 130.0 - - - - 1.1 - 0.5 - - 131.6
Kyrgyz Republic - - - 76.3 92.8 1.2 - - 100.0 1.0 271.3
Pakistan 820.0 - - 563.0 - 6.6 - - 1,633.4 2.1 3,025.0
Tajikistan 5.0 - 3.0 - 54.0 0.8 - - 3.6 0.6 67.0
Uzbekistan 300.0 - - - - 1.4 - - 408.2 0.4 710.0
Turkmenistan - - - - - 0.5 - - - - 0.5
South Asia 3,723.7 - 82.0 1,062.6 82.2 25.9 - 0.2 1,759.6 15.8 6,752.1
Bangladesh 475.0 - - 493.0 - 2.3 - - 519.9 2.1 1,492.3
Bhutan 70.0 - - 56.6 44.2 2.8 - - - 8.2 181.8
India 2,834.7 - 82.0 - - 11.5 - 0.2 523.6 5.6 3,457.7
Maldives - - - - 38.0 0.9 - - 72.0 - 110.9
Nepal - - - 325.0 - 4.1 - - 264.0 - 593.1
Sri Lanka 344.0 - - 188.0 - 4.4 - - 380.0 - 916.4
East Asia 1,994.5 - - 34.1 - 21.4 - 1.1 937.0 8.1 2,996.1
China, Peoples Republic of 1,820.0 - - - - 16.8 - 0.6 916.4 2.9 2,756.7
Mongolia 174.5 - - 34.1 - 4.6 - 0.5 20.6 5.2 239.4
Pacific 123.0 - - 12.6 27.1 6.7 0.2 0.4 30.9 1.1 202.0
Cook Islands 11.2 - - - - - - - 7.3 - 18.5
Federated States of Micronesia - - - - - 0.6 - - - - 0.6
Fiji Islands 100.0 - - - - 0.9 - - - - 100.9
Kiribati - - - - 3.0 0.2 - - 9.7 - 12.9
Marshall Islands - - - - - - - - - 0.4 0.4
Nauru - - - - 2.0 0.5 - - 2.7 - 5.2
Papua New Guinea - - - - - 0.1 - - - - 0.1
Samoa - - - - 5.0 - - - - - 5.0
Solomon Islands - - - 12.6 12.6 1.3 0.2 0.4 2.5 0.5 30.1
Timor-Leste 11.8 - - - - 1.6 - - 4.5 0.2 18.0
Tonga - - - - 4.5 0.7 - - 4.3 - 9.5
Tuvalu - - - - - 0.6 - - - - 0.6
Vanuatu - - - - - 0.4 - - - - 0.4
Southeast Asia 2,616.1 20.0 20.0 791.2 - 23.4 - 0.9 3,691.5 21.5 7,184.6
Cambodia - - - 226.0 - 4.4 - - 78.7 3.0 312.1
Indonesia 554.4 - - - - 3.7 - 0.4 1,199.4 2.8 1,760.7
Lao People's Democratic Republic 144.0 - - 76.0 - 2.9 - - 514.8 1.5 739.1
Malaysia - - - - 0.4 - - - - 0.4
Myanmar 150.0 20.0 20.0 80.0 - 4.1 - 0.5 34.0 7.9 316.4
Philippines 975.0 - - - - 2.4 - - 629.0 3.0 1,609.4
Thailand 53.0 - - - - 0.7 - - 32.0 - 85.7
Viet Nam 739.7 - - 409.2 - 5.0 - - 1,203.7 3.3 2,360.8
Regional 6.5 - 80.0 1.0 - 54.8 - 3.0 345.1 92.2 582.4
Regional 6.5 - 80.0 1.0 - 54.8 - 3.0 345.1 92.2 582.4
Grand Total 10,232.7 20.0 185.0 2,685.8 405.1 152.1 0.2 6.8 9,092.9 144.4 22,925.0
Region/Country
OCRADB Special Funds
Cofinancing
Total
ADF Other Special Funds
8 Appendix 2
GLOSSARY
ADB’s Operations ADB’s operations consist of ordinary, special operations, and cofinancing:
• Ordinary operations are financed from ADB’s ordinary capital resources (OCR) which comprise paid-in capital from its members, accumulated reserves, and borrowings from the open market.
• Special operations are financed from special funds resources.
• Cofinancing is provided by official or commercial sources.
B Loan / Syndication A cofinancing arrangement involving the coordinated process of pooling funds from various sources to a single borrower or grant recipient, and/or distributing related risks among such other financiers.
Cofinancing Refers to any transaction-specific arrangement under which funds or risk-sharing capacity provided by a third party (other than from entities operating under the budgetary resources of the borrowing or host developing member country, or the project sponsors) are associated with ADB funds, guarantees, or other financial instruments (OM E1).
Commercial Cofinancing Commercial cofinancing complements ADB’s ordinary capital resources (OCR) lending mainly through the application of ADB’s credit enhancement instruments. Such cofinancing is effected by both private and public sector institutions. It is usually sourced from financial markets and priced at commercial terms. Credit enhancements and risk-sharing arrangements are instrumental in mobilizing financial flows, particularly for projects and programs that, without ADB involvement, are perceived as risky by commercial partners. It includes b-loan, parallel loans, Trade Finance Program cofinancing, guarantee cofinancing, and risk transfer.
Direct Value Added (DVA) Cofinancing
For performance reporting purposes, ADB has introduced the concept of direct value-added (DVA) cofinancing, which involves active coordination and formal agreements among financing partners that bring about defined client benefits (OM E1).
Appendix 2 9
Equity Investment Two distinct types of equity investments that the Private Sector Operations Department (PSOD) undertakes in its normal course of business. These are:
• Direct equity investments – a direct investment in an investee company for its shareholdings and payment is made directly to the company. Investments may be in different types of shares, such as common (ordinary), preferred shares, as well as units of mutual fund. Equity investments can be denominated in the currency of the host country.
• Private equity funds – ADB may invest with a group of other investors, in a private equity fund taking a shareholding through different legal structures, the most common of which is a limited partnership agreement or a limited liability company. The private equity fund, in turn, invests in investee companies that it identifies through its deal pipeline. Private equity fund investments are mostly denominated in US dollars.
Grant A non-technical assistance instrument provided for investment
support and/or policy-based support.
Guarantee Guarantees allow ADB to assume commercial and/or political risks arising under debt instruments provided by other financing partners (OM D9). These include:
• Partial credit guarantee – ADB provides comprehensive nonpayment cover to cofinanciers against all commercial and political risks for a specified portion of a borrower’s debt service obligation.
• Political risk guarantee – ADB provides financing partners with coverage against specifically defined political (or sovereign) risks. Cover is available against any combination of transfer restriction, expropriation, political violence, contract disputes, and non-honoring of sovereign obligations or guarantees. The cover may be for principal and/or interest payment obligations.
Guarantee Cofinancing This refers to the portion of loans provided by third parties that is
not guaranteed by ADB. This portion is considered part of net DVA cofinancing and reported in the year of signing of the guarantee.
Modality Involves the specific application of instruments (loan, equity investment, grant, project cofinancing, and guarantee) classified as investment support, policy-based support, other budget support (countercyclical support facility), or technical and advisory support.
10 Appendix 2
Multitranche Financing Facility (MFF)
A financing modality made available by ADB to a client to support its medium- to long-term investment program or investment plan. It enables ADB to provide assistance programmatically by aligning the provision of financing with project readiness and the long-term needs of a client. The MFF facilitates long-term partnerships between ADB and its clients, and provides opportunities for constructive dialogue on physical investments as well as nonphysical (thematic and sector) interventions. The term “facility” refers to MFF (OM D14).
Nonsovereign Operations Refers to any loan, guarantee, equity investment, or other financing arrangement that is (i) not guaranteed by a government; or (ii) guaranteed by a government under terms that do not allow ADB, upon default by the guarantor, to accelerate, suspend, or cancel any other loan or guarantee between ADB and the related sovereign (OM D10).
Official Cofinancing Flowing mainly from financing partnerships with multilateral and bilateral development assistance agencies, official cofinancing mobilizes (i) grants and loans for investment projects supported by ADB and (ii) grants for ADB’s technical assistance (TA) operations. Such cofinancing is usually sourced from official development aid. Consistent with ADB’s strategic directions and resource allocations, official cofinancing focuses on strong partner and client coordination for (a) easy access and efficiencies in processing, (b) low transaction costs, and (c) harmonized and transparent mechanisms in reporting to financing partners on the development impact of their contributions.
Other Concessional Cofinancing
Mobilizes and syndicates grants and concessional loans for investment projects and programs and technical assistance projects, with ADB participation. In addition to public sources of cofinancing, this includes private sector cofinancing through foundations, corporate social responsibility programs, civil society organizations, and any other sources that do not fall under official and commercial cofinancing categories.
Private Sector Nonsovereign Transactions
Refers to financing for enterprises that are majority-owned by private parties (defined as entities with more than 50% of their capital held privately) (OM D10).
Project Refers to a project or program with a common outcome (one design and monitoring framework) regardless of financing instrument or financing source which ADB has agreed to finance or administer.
Appendix 2 11
Project Cofinancing Covers official loans, commercial loans, syndications, and investment grants financed from external sources.
Public Sector Nonsovereign Transactions
Refers to loans, guarantees, and syndications to or for enterprises that are majority owned by public parties (defined as entities with more than 50% of their capital held publicly) (OM D10).
Risk Transfer This refers to the arrangement whereby a third party assumes risk under a guarantee or loan provided by ADB. The amount of allocation relief depends on the risk rating and nature of the counterparty.
Sovereign Loans extended to the government or guaranteed by the government (OM D11).
Special Funds Resources Consist of Asian Development Fund, Technical Assistance Special Fund, Japan Special Fund, Pakistan Earthquake Fund, Regional Cooperation and Integration Fund, Climate Change Fund, Asia Pacific Disaster Response Fund, and Financial Sector Development Partnership Special Fund.
Statement of ADB’s Operations
An annual report providing information on ADB's operations to the Board of Directors. It provides a snapshot of the amount of assistance approved by ADB for the calendar year.
Supply Chain Finance Program
It provides guarantees and debt financing (both without a government guarantee) through partner financial institutions (PFIs) in support of payments throughout the supply chain.
Technical Assistance (TA) Cofinancing
Refers to TA financed from external sources. External sources comprise trust funds, grants provided under TA-specific cofinancing agreements, and grants under fund channeling framework agreements (OM D12).
Technical Assistance Grant
TA operations contribute to the achievement of country and regional development objectives. They facilitate the flow and efficient utilization of development finance to developing member countries (DMCs) and recipients within DMCs to enhance their development capacity. TA is classified as capacity development, policy advisory, project preparatory, or research and development.
Trade Finance Program (TFP)
TFP fills market gaps by providing guarantees and loans through partner banks to support trade. TFP enhances banks’ abilities to support importers and exporters, including SMEs, and works in partnership with the private sector to provide capacity, liquidity, and stability to the trade finance system.
Tranche (MFF) A tranche may comprise a loan, grant, guarantee, or ADB-administered cofinancing to finance a project or a component under the facility (OM D14).
Related Documents
