Asian Development Bank at a Glance [PDF]

Asian Development Bank at a Glance About ADB    

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ADB is an international development finance institution owned by 67 members, 48 of which are from Asia and the Pacific region. ADB’s vision: an Asia and Pacific region free of poverty. ADB’s mission: To help its developing members reduce poverty and improve their living conditions and quality of life. ADB’s main partners are governments, the private sector, non government organizations, development agencies, community-based organizations, and foundations. In pursuing its vision, ADB’s main instruments comprise loans, technical assistance, grants, guarantees, equity investments, and policy dialogues. Although most lending is in the public sector—and to governments—ADB also provides direct assistance to private enterprises of developing countries through equity investments, guarantees, and loans. Its triple-A credit rating helps mobilize funds for development. ADB’s ownership structure (as of 31 December 2014): ADB's five largest shareholders are Japan (15.7% of total shares), United States (15.6%), People’s Republic of China (6.5%), India (6.4%), and Australia (5.8%). Twenty-three ADB members are also OECD members, holding 64.6% of ADB's total subscribed capital. Subscription to the fifth general capital increase (GCI V) which commenced in 2009 was concluded in January 2012.

ADB Fast Facts

Our Strategy

President: Headquarters: Founded: As of 31 December 2014 Members: Regional members: Nonregional members: Field offices: Total employees: Nationalities employed:

Takehiko Nakao Manila, Philippines 1966 67 48 19 32 2,997 60

HOW WE HELPED IN 2014 Loans $12,919 million Grants $405 million Equity Investments $185 million

Total approved financing1 in 2014: $22.93 billion

Guarantees $20 million

Three Strategic Agendas:  Inclusive economic growth  Environmentally sustainable growth  Regional integration and cooperation Drivers of Change:  Private sector development  Good governance and capacity development  Gender equity  Knowledge solutions  Partnerships Core Operational Areas:  Infrastructure  Environment including climate change  Regional cooperation and integration  Finance Sector development  Education Asia’s Poverty Challenge

Technical Assistance $159 million

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Direct Value-Added Cofinancing $9,238 million

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1/ Includes Ordinary Capital Resources, Special Funds Resources and Cofinancing Operations

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Two-thirds of the world’s poor live in Asia 1.4 billion people live on less than $2 a day 850 million people lack access to safe drinking water 2 billion people lack access to improved sanitation Over 100 million children under 5 are underweight 1 child in 20 dies before reaching age 5

ADB’s Loan Portfolio Outstanding Effective Loans1

By Borrower Philippines 6.8%

Viet Nam, 6.4%

Others, 17.2%

As of 31 December 2014

People's Republic of China, 25.6%

Pakistan, 8.4%

Indonesia, 11.2%

By Sector Agriculture, Natural Resources and Rural Development 5.6% Finance 7.4%

Water and Other Urban Infrastructure and Services 8.7%

India, 24.3%

Multisector 3.6%

Others 0.9%

Education 2.6% Transport 38.5% Energy 22.4%

Public Sector Management 10.2%

Note: Percentages may not total 100% because of rounding. 1/

Ordinary Capital Resources (OCR) Outstanding Effective Loans were $82 billion. Outstanding Effective Loans include Loans Outstanding at $56 billion (gross) and Undisbursed Effective Loans at $26 billion.

Asian Development Bank at a Glance FUNDING OPERATIONS ADB as a Borrower ADB is a leading AAA borrower in international and domestic capital markets having issued bonds across various markets in 32 currencies. ADB is AAA-rated by Standard & Poor’s, Moody’s and Fitch based on strong fundamentals: strong shareholder support, solid financial profile, and conservative financial policies.  Callable capital ($145.4 billion as of 31 December 2014) is available for debt service payments and provides the ultimate backing for ADB’s borrowings and guarantees. ADB has never made a call on its callable capital.  Around 93% of ADB’s loans are to the sovereign portfolio. ADB has never suffered any losses of principal on sovereign loans and does not take part in debt rescheduling.  The total amount of disbursed loans, approved equity investments, and the maximum amount that could be demanded from ADB under its guarantee portfolio may not exceed the total amount of ADB’s unimpaired subscribed capital, reserves and surplus (exclusive of the special reserve).  ADB’s gross outstanding borrowings may not exceed the sum of callable capital of non-borrowing members, paid-in capital, and reserves (including surplus). Balance Sheet as of 31 December 2014

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Assets

Liabilities & Equity $ bn

Net Loans

1

Investments Other

2

Total Assets

%

$ bn

%

55.9

48

Borrowings

62.7

54

23.0

20

Equity

16.9

15

36.1

31

115.7

100

36.8

32

115.7

100

Other

2

Total Liabilities & Equity

1/ Net of allowance for loan losses and inclusive of net unamortized loan origination costs. 2/ Mostly swap receivables and payables. Net payable for swaps is $0.9 billion.

Funding Strategy ADB’s funding strategy seeks to diversify across markets, products and maturities to ensure availability of funds at all times to meet operational needs while being responsive to investor demand.  Benchmark bond issuance: ADB issues at least once per year with minimum size of US$1 billion per issue in 3, 5, 7 or 10-year maturities. In 2014, ADB issued its inaugural euro-denominated benchmark bond.  Public bond issuance: ADB taps other markets such as AUD, BRL, CAD, CHF, EUR, GBP, JPY, NOK, NZD, etc.  Local Currency issuance: ADB is committed to the development of the domestic capital markets of its members. ADB was the first supranational issuer of Kangaroo bonds in Australia. ADB was also the first foreign issuer in People’s Republic of China, India, Japan, Republic of Korea, Malaysia, Philippines, Taipei, China, and Thailand.  Private placements: ADB customizes issuance to meet investor needs with regard to currency, size, tenor, and structure.  Thematic bonds: These bonds highlight ADB’s efforts to support key initiatives such as its water programs and clean energy projects.  In 2015, ADB issued its inaugural green bond.

Funding Volume

Maturity Profile of Outstanding Borrowings Ave. maturity in years 7

$bn 16.0 14.0

6

12.0

As of 30 April 2015

Global $/€ Benchmark Bonds Public Bond Issues

5

10.0

4

Local Currency

8.0 3

6.0

1

Other private placements (institutional,Uridashi, retailtargeted) Structured private placements

0

Average maturity (based on first call date)

2

4.0

2.0 0.0 2005

2006

2007

2008

2009

2010

2011

2012

2013

2014 May-15

Note: Excluding Euro-Commercial Papers (ECPs). Include trades up to 19 May 2015.

Note: Based on notional amounts. Bonds with put and call options are considered maturing on the next put or call date. Includes ECPs.

Contact Us ASIAN DEVELOPMENT BANK Treasury Department Funding Division 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines

May 2015. Hong Kong.

Bloomberg: ADB Email: [email protected] Tel. No.: +632 683-1204 Fax No.: +632 632-4120

ADB Website: Investor Website: Funds and Resources: ADB Green Bonds: Annual Report: Asian Development Outlook:

www.adb.org www.adb.org/site/investors/main www.adb.org/site/funds/main www.adb.org/site/investors/adb-green-bonds www.adb.org/documents/series/adb-annual-reports www.adb.org/publications/series/asian-development-outlook