Asian Development Bank (ADB)

05 Jul 2025 GS 2 International Relations

The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966 to promote social and economic development in Asia and the Pacific.

It is headquartered in Mandaluyong, Metro Manila, Philippines, with 42 field offices in Asia-Pacific and representative offices in Washington, Frankfurt, Tokyo, and Sydney.

Key Facts

Members: 69 (as of 2019), including regional (Asia-Pacific) and non-regional developed countries.
Voting System: Weighted, based on capital subscription (similar to the World Bank).
Major Shareholders (as of Dec 2020):

Japan and USA: 15.571% each
China: 6.429%
India: 6.317%
Australia: 5.773%

India is the largest borrower from the Asian Development Bank (ADB)

Governance Structure

Board of Governors: One representative from each member country; highest decision-making body.
Board of Directors: 12 members elected by the Board of Governors (8 from regional, 4 from non-regional members).
President: Elected by the Board of Governors; traditionally a Japanese national.

Current President: Masato Kanda (since Feb 2025)
Predecessors: Masatsugu Asakawa, Takehiko Nakao, Haruhiko Kuroda

ADB Financing:

Types of Loans

Hard Loans: At commercial rates, given to middle-income countries.
Soft Loans: Concessional rates for poorer countries.
Since January 2017, both types are financed from ADB’s Ordinary Capital Resources (OCR), which acts as the general operational fund.

Private Sector Support

The Private Sector Operations Department (PSOD) offers:
- Loans, equity, guarantees, and mezzanine finance (debt-equity hybrid).

Funding Sources

Capital Markets: ADB issues AAA-rated bonds (as per Moody’s, April 2025).
Member Contributions: Shareholder equity and paid-in capital.
Retained Earnings and Loan Repayments.

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