ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
Established in 1966, it is owned by 68 members—49 from the region.
ORGANIZATION
ACCOUNTABILITY
ADB supports projects in developing member countries that create economic and development impact, delivered through both public and private sector operations, advisory services, and knowledge support.
Private Sector Financing
ADB focuses on projects that help promote private investments in the region that will have significant development impact and will lead to accelerated, sustainable, and inclusive growth.
The ADB Frontier Facility
Frontier-market gazelle companies1 are starved for risk capital. ADB Frontier is a next-generation ADB facility designed to:
- Invest in fast-growing gazelle SMEs operating in small frontier markets, including SMEs in the agrifood, light manufacturing, and tourism industries.2
- Crowd-in private capital, multinational companies, and business expertise to help gazelle companies grow and integrate into regional supply chains.
- Invest with a gender and climate lens.
- Catalyze new industries, digital transformation, employment, and economic growth.
1 A gazelle company is a young, very fast-growing company. It maintains consistent and rapid expansion of both employment and turnover (sales) for at least four consecutive years.
2 Eligible ADB developing member countries will include least developed countries (LDC), fragile and conflicted affected states (FCAS), and small island developing states (SIDS).
Now Piloting in
Cambodia and Lao PDR
In May 2023, ADB Frontier launched a pilot Seed program in Cambodia and Lao PDR: markets where ADB has exceptional local teams, significant investment track record, and strong market networks and relationships. The Seed Program will deploy investment-readiness funding to support recipient companies. Recipients will use the funds to scale up their operations while building capacity to pitch for and receive new investments.
ADB Frontier is also performing a market study in Fiji and the Pacific.
Investing for Impact on Commercial Principles
ADB Frontier will invest in impactful companies with commercial potential, leveraging concessional funding sources.
Seed Program
(now piloting)
The Seed Program provides investment-readiness financing to select companies in Cambodia and Lao PDR.
Funding size: $50,000 - $200,000
Impact-first Investment Fund
(targeting operations in 2024)
Will invest in gazelle SMEs in Cambodia and Lao PDR, including top-performing Seed Program participants, employing equity, debt, and other innovative investment products.
Investment size: $500,000 - $2,000,000
Managed by ADB
ADB Frontier is a next-generation ADB facility that will build upon the Bank’s strengths and successful recent models.
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Governance
ADB Frontier will be supported by a fund Investment Committee that includes industry experts with substantial experience in investing in companies in frontier markets. Transactions will benefit from ADB’s stringent integrity due diligence and environmental and social safeguards.
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Infrastructure
ADB Frontier will benefit from ADB’s regional infrastructure including its extensive resident missions in small frontier markets, as well as the Bank’s extensive knowledge and market insights.
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Networks
ADB Frontier will tap into ADB’s vast networks and on-the-ground partnerships to help portfolio companies connect with new customers, access additional sources of finance, and build their capacity.
Contacts
Investment Portfolio
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Green Goods (Lao PDR)
Produces high quality organic eggs for local and export markets, adopted technology-enabled solutions to modernize a traditional industry to increase income for farmers and help them adapt to climate change.
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Otago (Cambodia)
Provides modular industrial system for the mass production of smokeless, sustainable, and low cost char briquettes using widely-available coconut waste. Otago’s growth will drive down demand for traditional charcoal, thus reducing deforestation in Cambodia and neighboring country forests.
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Slow Coffee (Lao PDR)
Promotes biodiversity on coffee farms by growing and protecting native plants and trees. The agroforests capture more carbon than is emitted in their entire production chain. Local farmers earn living income that is sustainable, fair, and equitable.
Knowledge Library
A collection of reports and resources that inspired and formed the impetus for ADB Frontier.
