ADB, DFIs use $1.2bn con­ces­sional funds

The Financial Daily - - CONTINUATIONS -

IS­LAM­ABAD: The Asian De­vel­op­ment Bank (ADB), to­gether with other de­vel­op­ment fi­nance in­sti­tu­tions (DFIs) last year, used about $1.2 bil­lion in con­ces­sional funds to sup­port nearly $9 bil­lion in pri­vate in­vest­ment projects in emerg­ing mar­kets.

These projects in­cluded $3.9 bil­lion of com­mer­cial fi­nanc­ing from DFIs as well as $3.3 bil­lion from pri­vate lenders and in­vestors, ac­cord­ing to a new DFI re­port that high­lights how blended con­ces­sional fi­nance can be key to mo­bi­liz­ing pri­vate in­vest­ment in chal­leng­ing en­vi­ron­ments.

The 2018 Joint Re­port of the DFI Work­ing Group on Blended Con­ces­sional Fi­nance for Pri­vate Sec­tor Projects of­fers an ex­ten­sive set of data, in­clud­ing ge­ogra­phies, sec­tors, and vol­umes of pri­vate fi­nance mo­bi­lized, on the ex­tent to which blended con­ces­sional fi­nance was used by DFIs, in­clud­ing ADB, dur­ing 2017.

Blended con­ces­sional fi­nance in­volves com­bin­ing conces- sional funds with pri­vate sec­tor and DFI com­mer­cial fi­nanc­ing and it al­lows DFIs to sup­port pri­vate sec­tor in­vest­ment in or­der for in­vestors and lenders to pro­vide fi­nanc­ing to projects that they would nor­mally not be able to, par­tic­u­larly in high­er­risk coun­tries.

Fur­ther to the En­hanced Blended Con­ces­sional Fi­nance Prin­ci­ples for DFI Pri­vate Sec­tor Op­er­a­tions, DFIs use con­ces­sional funds to the min­i­mum ex­tent needed and for the

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