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ADB to double private sector investments

The Asian Development Bank (ADB) plans to double its private sector investment portfolio by 2020 to support the growth of developing nations in the region, including the Philippines.

In a statement, Takehiko Nakao, ADB president, said the Manila-based lender will “substantially expand” its private sector financing and investment operations to meet the rapidly changing needs of Asian countries.

“ADB believes that the private sector is a key engine of growth in developing Asia and a critical partner in alleviating poverty,” Nakao said.

In 2015, ADB approved a record $2.6 billion of new financing and investments for the private sector, higher by 37 percent from a year earlier and 62 percent more than in 2013.

To date, ADB’s private sector investment portfolio amounted to over $8 billion, and it expects that the bank’s private sector operations will be doubled from current levels by 2020.

In addition to the provision of its own capital, ADB also seeks to catalyze the flow of third-party commercial financing into its transactions through a variety of co-financing and risk mitigation products.

In 2015, ADB’s private sector co-financing was over $4.5 billion.

Likewise, ADB continued to ramp up its efforts to create more commercially-viable public-private partnerships (PPP) in the region.

ADB served as transaction advisor for the Philippines’ largest PPP, the $3.8 billion investment in the North South Railway and commuter rail line.

Alongside the growth in overall volume, ADB’s private sector operations also reached record levels in strategic priority sectors in 2015, including climate change, frontier economies, gender equality, and inclusive business.

Earlier, ADB reported that it registered an all-time high performance last year reflecting strong and growing demand from the Asian and Pacific region.