ADB, DFIs use $1.2bn concessional funds
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