Authorizations and exposure

• Investment lending instruments:
• Global credit programs provide financing for MSMEs or subnational entities (such as cities and states) to finance projects in many sectors that promote economic and social development. IDB extends funding to first-tier private or public intermediary financial institutions, which in turn provides funding to second-tier public financial institutions (such as microfinance institutions), which then lends to MSMEs or subnational entities. The size of the global credit loan is determined by the expected demand for investments and the institutional capacity of the intermediary
• Loans based on results: Link disbursement of funds directly to the achievement of predefined, sustainable results
• Specific project loans: Designed to finance one or more specific projects for very specific purposes with interdependent components
• Multiple works loans: Finance groups of similar works that are physically independent of one another and whose feasibility does not depend on the execution of any given number of the works projects. Identified projects should be at least 30% of the total cost
• Project preparation and execution: For preparation phase of a project, finance activities to help start projects before the first funds are disbursed from the larger loan, and lay the groundwork to make institutions more sustainable
• Reimbursable technical cooperation: Transfers the IDB’s technical know-how and expertise to strengthen the technical capacity of entities in developing member countries over the long term
• Investment lending instruments in the event of natural disasters:
• Contingent credit facility for natural disasters: Provides resources following a catastrophic disaster to cover a country’s immediate expenses to restore basic services to the population
• Immediate response facility: Helps cover immediate expenses incurred in restoring basic services to the population stricken by a natural and unexpected disaster
• Other investment lending subproducts:
• Conditional Credit Line for Investment Projects (CCLIP): Finances programs involving one sector or multiple sectors and is expected to increase the agility of the processes to prepare and approve loans, reduce loan-processing costs; and reward borrowers for good performance in executing projects
• Sector-wide approach (SWAp): Aims at harmonizing project procedures among a government and its development partners in a single sector, strengthening the use of the country’s procurement systems
• Policy-based lending:
• Multi-tranche policy-based loans: Disbursed in several tranches, when the policy conditions linked to each tranche are completed and verified
• Programmatic policy-based loans: Support a framework of reforms/institutional changes to be executed in phases. Funds are disbursed in a series of single tranches over the medium term (three to five years)
• Special development lending: Budget support lending instrument aimed at contributing to addressing the effects of a macroeconomic crisis on a country’s economic and social progress

• IDB offers guarantees to enhance financing of sovereigns with sovereign counter-guarantees
• Types of guarantees: Partial credit guarantees or political risk guarantees
• Uses of guarantees: Enhancement of bond issues, project finance, asset-backed securities, securities backed by future flows, or structured trade transactions
• Amounts: Calibrated to optimize impact on the underlying instrument’s rating
• Tenor: Maximum guarantee tenor of up to 20 years for policy-based interventions with a maximum WAL of 12.75 years; up to 25 years for investment operations with a WAL of 15.75 years
• Fees: Pricing neutrality applies between guarantees and loans

• IDB provides as grants non-reimbursable funds for technical cooperation programs, though some grants may be repaid to the IDB if the program eventually obtains a loan, either from the IDB itself or another source
• IDB Grant Facility: Grant resources dedicated specifically to Haiti
• Trust fund grants: All legally constituted public and private organizations are eligible to receive trust fund resources, although some funds limit their support to specific geographic areas and sectors
• Multilateral Investment Fund (MIF) grants: The MIF, an autonomous fund member of the IDB group, provides grants to support small-scale, targeted interventions that pilot new approaches and act as a catalyst for large reforms
• Social Entrepreneurship Program: Provides grants to private, non-profit, community-based organizations and public local development institutions
• Program resources may be used for technical assistance, training, investment in productive or basic services infrastructure, procurement of equipment and materials, working or operating capital, and/or marketing

• More detailed information on ADB’s interest rates, charges, and fees can be found on its website

• Generally, eligibility for ADB loans or loan guarantees is limited to any member country, any political subdivision or government organization unit thereof, any independent agency, semi-public enterprise, or private enterprise in the territory of a member country, regional organizations composed of member countries, and to the Caribbean Development Bank

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