ADB wastewater B-loan unleashes commercial banks

Author: Ashley Lee | Published: 9 Oct 2014

This morning Asian Development Bank (ADB) and 13 commercial banks signed a B-loan to a wastewater treatment company in China. It highlighted the multilateral’s efforts to bring regional and international banks into infrastructure deals.

The commercial banks’ $288 million B-loan – upsized from $120 million – to Beijing Enterprise Water Group (BEWG) is the largest such loan arranged by ADB to date.

While B-loans are a fairly established tool for ADB to involve commercial banks in financing projects, the commercial banks’ demand for this B-loan could signal more deals to come from the multilateral.

"The B-loan is to perpetuate our development mission with partner banks to promote reuse of treated wastewater as a strategic option for sustainable water management, " said Hisaka Kimura, ADB’s East Asia head of private sector...