ADB update on dev financing in extended realms 

Asian Development Bank's (ADB) latest annual meet was different, in venue, scale of finance planning, dimensions of outlook extending from Asia through the Pacific into Europe and so. Pooling funds through a broader synergy for bankrolling development in the fast-changing digital era lies at the core.

The end-result reflects the motto: "Be bolder, move faster, work more closely". The rallying call was voiced by Asian Development Bank (ADB) President Masato Kanda at the 58th Annual Meeting held in Milan earlier this month. He urged collective action to solve the growing and complex challenges in Asia, and beyond.

The May 4-7, 2025 meet in Milan, Italy, brought together leaders from 69 member-countries to address the pressing development challenges of Asia and the Pacific. Themed 'Sharing Experience, Building Tomorrow', the conference emphasised collaborative solutions for sustainable growth.

Milan, Italy's foremost economic hub, transformed into a festive and vibrant city to host the stakeholders of the Manila-headquartered development financier. Banners promoting the event adorned metro stations and shopping centres, highlighting the scale and significance of this global gathering.

The event drew more than 5,000 participants, including ADB Board of Governors, investors, public- and private -sector representatives, and members of the media. The assembly marked a historic moment, as Italy-one of ADB's founding members-played the host for its annual meet for the first time. Held at the Allianz MiCo Convention Centre, Milan's state-of-the-art venue, the event was impeccably organised with the support of volunteers, facilitators, security personnel, and medical staff. Following the 2016 meeting in Germany, this was another major ADB event hosted within the European Union.

The gathering served as a critical platform for ADB's shareholding governments to provide strategic direction on administrative, financial, and operational matters. Over the years, these meetings have evolved into a premier forum for dialogue on economic and social development in the Asia-Pacific region.

What makes it a bit different is its functional pledge suiting the time. The ADB announced extended support to alleviate hunger, improve diets, and protect the environment. On the first day, the bank unveiled its plan to expand long-term support for food and nutrition security in Asia and the Pacific by $26 billion, raising its total commitment for food-security initiatives to $40 billion for a period covering 2022-2030.

Among the key announcements was President Masato Kanda's bold pledge to scale up financing for food systems transformation to $40 billion by 2030. He also emphasised the need for digital transformation and stronger regional cooperation.

Speaking at the opening session, President Kanda said: "The uncertainties facing Asia and the Pacific are also an opportunity to build a more resilient and sustainable future. External shocks, debt burdens, and climate change weigh heavily on the people and economies of the region. But we are not starting from zero. Growth remains solid, trade and economic integration are deepening, supply chains are diversifying, and digital connectivity and innovation are accelerating. Uncertainty is not a reason for retreat. It is a call to be bolder, to move faster, and to work more closely than ever before."

The opening also featured remarks by Italian Prime Minister Giorgia Meloni, Minister of Economy and Finance Giancarlo Giorgetti, and Fabio Panetta, Governor of the Bank of Italy and Chair of the ADB Board of Governors. Giorgetti underscored the role of collaboration in achieving sustainable long-term growth.

"Enhanced collaboration will support higher and sustainable long-term economic growth, avoiding the materialization of downside risks and mitigating their possible consequences," the premier said.

On May 3, prior to the meeting, the ADB and Japan launched the Asia and Pacific Market Acceleration Platform (AMAP) to boost private- sector development and investment in the region. Japan, as the founding contributor, made an initial commitment of $20 million.

This year's Annual Meeting focused on four key areas: food systems transformation, digital innovation, energy connectivity, and climate resilience. The ADB announced $40 billion in financing for food systems transformation by 2030, including $18.5 billion for government projects and $7.5 billion for private-sector engagement. Investments will also target digital technologies to expand access to education, financial services, and markets.

In the energy sector, the ADB committed up to $10 billion to modernise infrastructure, including support for the ASEAN Power Grid. On climate resilience, the bank emphasized strengthening infrastructure, protecting ecosystems, and aiding vulnerable communities in adapting to climate change.

Also reaffirmed is its goal to quadruple private- sector financing to $13 billion annually by 2030, enhancing its role as a catalyst for inclusive development.

Representatives from ADB- member countries and private -sector stakeholders actively participated in the Annual Meeting. From Bangladesh, a delegation led by Finance Adviser Dr Salehuddin Ahmed engaged in discussions focused on launching Orange Bonds, securing concessional credits, and exploring bilateral cooperation with the UK. These talks reflect Bangladesh's commitment to sustainable finance and development aligned with ADB's evolving priorities.

During the business session, Dr Ahmed highlighted four key areas for deeper engagement with the ADB: promoting digital transformation to reduce disparities among marginalised groups; increasing concessional financing in renewable energy, climate-smart agriculture, resilient infrastructure, and coastal protection; accelerating investments in cross-border infrastructure and regional value chains; and expanding access to concessional resources through co-financing and innovative blended finance solutions.

A significant event was the signing of a Master Framework Agreement with ten leading global insurers to mobilize up to $2.75 billion in private capital in support of ADB's sustainable lending efforts. Participating insurers include Tokio Marine Group, Chubb, AXA XL, Liberty Specialty Markets, Coface, Swiss Re, Everest, AXIS Capital, The Hartford, and Allianz Trade.

The agreement aims to strengthen the private sector in the region and enhance ADB's capacity to lend more by transferring credit risk into insurers' balance sheets. According to an ADB press release, this will free up ADB's capital, manage its exposures, and increase lending capacity.

"This partnership demonstrates how innovative risk-sharing can attract billions in private capital for sustainable development. By transferring credit risk to global insurers, ADB boosts its lending capacity and creates a replicable model for reducing infrastructure investment risks in emerging markets," said ADB Vice-President Bhargav Dasgupta. "This partnership highlights how insurance can mobilise private capital for climate-resilient and inclusive growth."

Tokio Marine HCC - Credit Group President Jerome Swinscoe added: "While climate change priorities are shifting, Tokio Marine Group remains committed to supporting energy transition efforts in line with Japan's Green Transformation (GX) strategy. We are delighted to contribute to ADB's private capital mobilisation efforts by participating significantly in the new Master Framework."

The programme streamlines the underwriting and approval process for credit-risk transfers, enabling the ADB to mobilize co-financing capacity more efficiently. ADB's infrastructure loans have already supported projects in solar and wind energy, sustainable transport, and green data centres. The programme will further expand these efforts and provide flexible, innovative solutions to develop private-sector-investment capacity in the region.

In the concluding sessions of the 58th Annual Meeting, ADB Vice-Presidents summarised key takeaways and outlined future steps for cooperation and innovation. The 59th Annual Meeting is scheduled to take place in Uzbekistan in May 2026, continuing the tradition of collaboration and shared learning among Asia-Pacific nations and development partners.

Since its founding in 1966, the Asian Development Bank-owned by 69 members, including 50 from the region-has remained a driving force for inclusive, resilient, and sustainable growth in Asia and the Pacific. Through innovative financing tools and strategic partnerships, the ADB continues to address complex regional challenges and transform lives.

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