ASIAN DEVELOPMENT BANK Investing in a Prosperous, Inclusive, - PowerPoint PPT Presentation

ASIAN DEVELOPMENT BANK Investing in a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific August 2020

 Overview  Credit Profile  Funding Operations  Green Bond Framework  Appendices 2

WHO WE ARE • Founded in 1966 • A multilateral development bank • Headquartered in Manila, Philippines • 40 field offices • 3,548 employees spanning 64 nationalities 3

THE REGION’S POVERTY CHALLENGE VISION VISION VISION • Asia and the Pacific region is still home to around 40% of the world’s extreme poor 1 To achieve a prosperous , To achieve a prosperous , • An estimated $1.7 trillion per year is inclusive , resilient , and inclusive , resilient , and needed until 2030 to fill infrastructure gaps sustainable Asia and the sustainable Asia and the Pacific, while sustaining its Pacific, while sustaining its • Of the 10 countries most exposed to efforts to eradicate extreme efforts to eradicate extreme climate change, environmental stress, and natural disaster risk, 7 are ADB poverty . poverty . developing member countries 1/ Extreme poverty is measured by the $1.90/day threshold at 2011 purchasing power parity. World Bank. PovcalNet. http://iresearch.worldbank.org/PovcalNet/home.aspx. 4

CLIMATE CHANGE AND DISASTERS IN ASIA AND THE PACIFIC 5

STRATEGY 2030 OPERATIONAL PRIORITIES Addressing remaining Tackling climate change, building climate and Accelerating progress in poverty and reducing disaster resilience, and enhancing gender equality inequalities environmental sustainability At least 75% of the number of At least 75% of the number of committed committed operations by 2030 operations by 2030, $80 billion from own resources from 2019–2030 Fostering regional Strengthening governance Promoting rural development Making cities more cooperation and integration and food security and institutional capacity livable Catalyzing and mobilizing financial Expanding private Strengthening resources for development sector operations knowledge services $1 in private sector operations financing matched by $2.50 of cofinancing by 2030 6

ADB’S OPERATIONAL PRIORITIES MAPPED TO THE SDGs ADB has worked to align its strategy and policies with the 17 Sustainable Development Goals (SDGs) adopted by the United Nations General Assembly. Addressing remaining Making cities poverty and reducing more livable inequalities Promoting rural Accelerating progress development and food in gender equality security Tackling climate change, Strengthening building climate and governance and disaster resilience, and institutional capacity enhancing environmental sustainability Fostering regional cooperation and integration 7

Response to the COVID-19 Pandemic • Since early February, ADB has deployed about $70 million in grant resources to 28 countries to help our developing member countries (DMC) procure essential medical goods and services, as well as personal protective goods. ADB President Masatsugu Asakawa lent a helping hand to deliver needed supplies to poor homes in Metro Manila. • Support has been extended through intensive collaboration with international organizations and government counterparts such as the World Bank and United Nations (UN) agencies such as the World Health Organization and the UN Children’s Fund. • On 13 April 2020, ADB unveiled a COVID-19 response package of $20 billion to help the DMCs address the pandemic. 8

Response to the COVID-19 Pandemic • This builds on the $6.5 billion initial package announced on 18 March 2020 and expands it by adding $13.5 billion to help our DMCs counter the severe macroeconomic and health impact caused by COVID-19. • The key features of the enhanced package are as follows: Establishment of a COVID-19 Pandemic Response Option under o ADB’s Countercyclical Support Facility Allocation of about $2.5 billion in concessional and grant resources o Making available some $2 billion for private sector operations o Adjustments to policies and business processes o 9

STRONG SHAREHOLDER SUPPORT 68 members: 49 in the region Shareholdings 1 Shareholdings 1 Non-Borrowing Shareholders Ratings 2 2019 Borrowing Shareholders Ratings 2 2019 Japan A1/A+ 15.6% People's Republic of China A1/A+ 6.4% United States Aaa/AA+ 15.6% India Baa3/BBB- 6.3% Australia Aaa/AAA 5.8% Indonesia Baa2/BBB 5.4% Canada Aaa/AAA 5.2% Malaysia A3/A- 2.7% Republic of Korea Aa2/AA 5.0% Philippines Baa2/BBB+ 2.4% Germany Aaa/AAA 4.3% Pakistan B3/B- 2.2% France Aa2/AA 2.3% Thailand Baa1/BBB+ 1.4% United Kingdom Aa2/AA 2.0% Bangladesh Ba3/BB- 1.0% Italy Baa3/BBB 1.8% Others 5.3% New Zealand Aaa/AA 1.5% Others 7.7% 27 Countries 66.8% 40 Countries 33.2% Totals may not add up because of rounding. 1/ Percent of Total Subscribed Capital as of 31 December. 2/ Moody’s and Standard & Poor’s ratings are as of 6 July 2020. (Source: Bloomberg) 10

SOLID CAPITAL STRUCTURE Growth in ADB’s capital base  ADB has raised its capital base $ bn Q1 2020 five times since 1966 150.0 145.8  Callable capital is available for 130.0 the protection of ADB’s 110.0 bondholders 90.0  ADB has never made a call on its callable capital Pre-GCI-V 70.0 54.9 50.0 GCI-IV ADB Capital Structure as of 31 March 2020 30.2 30.0 GCI-III $billion GCI-I GCI-II 11.5 1.0 3.7 10.0 Paid-in capital 7.3 Callable capital 138.5 -10.0 1971 1976 1983 1994 2008 Subscribed capital 145.8 Mar-20 Callable Capital Paid-In Capital 11

 Overview  Credit Profile  Funding Operations  Green Bond Framework  Appendices 12

2019 OPERATIONS TOTAL OPERATIONS $33.75 BILLION • $21.64 billion in loans and grants and others • $237 million for technical assistance • $11.86 billion from cofinancing partners 13

ASSISTANCE TOTAL OPERATIONS BY REGION IN 2019 $33.75 BILLION $0.758 billion Regional $6.83 billion Central and West Asia $3.14 billion East Asia $10.40 billion South Asia $11.97 billion Southeast Asia $0.643 billion Pacific • Focus on Asia and the Pacific • Concern for small economies • Promoting regional and sub-regional cooperation • Developing domestic bond markets 14

APPROVED LOANS BY BORROWER TOTAL – $300.3 billion Kazakhstan Cumulative OCR regular and concessional lending, $5,574 mn as of 31 March 2020 Georgia $3,463 mn Azerbaijan Mongolia Uzbekistan $4,427 mn $2,868 mn $8,629 mn Armenia People’s Republic Republic of Korea Regional $1,536 mn Turkmenistan Kyrgyz Republic Bhutan of China $6,338 mn $676 mn $625 mn $1,300 mn $568 mn $42,552 mn Tajikistan Nepal Afghanistan Taipei,China $493 mn $5,365 mn Bangladesh $956 mn $100 mn $23,718 mn Pakistan Hong Kong, China Kiribati Samoa Lao PDR Solomon Islands Republic $33,627 mn India $35 mn $102 mn $191 mn $172 mn $1,929 mn of the $47,875 mn Union of Myanmar Cambodia Philippines Viet Nam $3,444 mn Federated States Marshall $3,077 mn $16,752 mn $21,515 mn Republic of the of Micronesia Islands Palau Maldives $84 mn $93 mn $85 mn Thailand $163 mn Sri Lanka $7,448 mn $9,896 mn Nauru Tonga Singapore $5 mn $69 mn Malaysia $181 mn $1,998 mn Papua New Guinea Cook Islands $2,944 mn $112 mn Indonesia Timor-Leste Legend : $38,320 mn $272 mn Vanuatu Fiji Tuvalu $98 mn $589 mn $8 mn $0 - $500 million $5,001 - $10,000 million $501 - $2,000 million $10,001 - $15,000 million $2,001 - $5,000 million $15,001 million - and above 15

COMMITTED LOANS $160.8 BILLION 1,2 (As of 31 March 2020) Philippines Viet Nam 6.3% 7.4% Energy 19.7% Others Transport 25.8% Indonesia 31.8 % Water Urban 8.4% By Infrastructure By Sector 10.1% Bangladesh Borrower Others India Public Sector 9.2% 4.1% 16.9 % Management 10.3% Pakistan Multi-Sector Agriculture and 2.3% 10.0% People’s Republic Natural Resources Education of China 8.9% 5.2% Finance 16.0% 7.7% 1/ Includes concessional loans that were transferred from ADF to OCR effective 1 January 2017. 2/ OCR Committed Loans include Loans Outstanding at $115.5 billion (gross) and Undisbursed Effective Loans at $45.3 billion. Regular sovereign at $113.0 billion (70%), concessional sovereign at $38.8 billion (24%) and non-sovereign at $9.0 billion (6%). 16

OPERATION PORTFOLIO 1,2 BY COUNTRY 91.8% SOVEREIGN, 8.2% NON-SOVEREIGN (As of 31 March 20209) Others 16% Uzbekistan People’s Republic 3% of China India 17% 16% Sri Lanka Others 4% India 46% Philippines People’s 16% 7% Republic of China Viet Nam 12% Pakistan Pakistan 8% 3% Bangladesh 11% Viet Nam Thailand 9% Indonesia 10% 5% 10% Indonesia 7% Note: Totals may not add up because of rounding. 1/ The sum of disbursed and outstanding loan balances, present value of guaranteed obligations and fair values of equities. 2/ Includes concessional loans that were transferred from ADF to OCR effective 1 January 2017. Source: ADB. Office of Risk Management. 17

BALANCE SHEET OVERVIEW As of 31 March 2020 Assets Liabilities and Equity Borrowings Net Loans 1 $103.2bn $114.8bn Equity 2 Investments $52.9bn $37.4bn Other 3 Other 3 $64.3bn $68.2bn TOTAL = $220.4bn TOTAL = $220.4bn 1/ Sovereign regular ($79.7 bn), sovereign concessional ($29.1bn) and non-sovereign ($6.7 bn) less allowance for loan losses ($0.7 bn). 2/ On 1 January 2017, $30.7bn were transferred from ADF to OCR ordinary reserve as a result of the OCR-ADF merger. 3/ Mostly derivative assets and liabilities. Net derivative asset is $1.3 billion. 18