Asian Development Bank
List of Deals
- 1971 $25,000,000 7 3/4% 25-year bonds of 1971 due April 15, 1996; $25,000,000 6 1/2% 5-year notes of 1971 due April 15, 1976
- 1975 $75,000,000 8 1/2% 5-year notes of 1975 due April 15, 1980
The Asian Development Bank was established by a charter signed by thirty-one countries between December 4, 1965 and January 31, 1966. Of these thirty-one countries, nineteen were Asian and twelve were non-Asian, including the United States. Business commenced on December 19, 1966. The bank was created to encourage regional economic cooperation in the Asian and Pacific region and economic growth of its developing members by lending funds, promoting investments, and providing technical assistance with special regard to the needs of smaller or less-developed member countries.
The Asian Bank operated like the World Bank, albeit on a considerably lesser scale, with loans made at rates usually lower than are commercially available and frequently for projects commercial bankers would be reluctant to consider.
The bank reported a profit in its first year of operations ending in December 1967 by earning $2.1 million. The first and only loan made during this year was to the Industrial Finance Corporation of Thailand. In 1968 the bank granted $41.6 million in loans for seven projects. The bank made loans during 1972 in the amount of $316.1 million for thirty-two projects. The purposes for these loans varied. To improve electric power in Thailand, the Asian bank loaned $24 million to finance the second stage of nationwide expansion. It also loaned $30 million to the Korea Development Finance Corporation for relending to private enterprises in manufacturing, transport, tourism, and commercially oriented agriculture. The bank also made loans to the Philippines to expand the water supply system of metropolitan Manila and to Indonesia to expand the fiber production and processing industry to meet the growing demand for fiber bags for agricultural products.
The Asian Bank continued to expand in 1974 by seeking new members, including Iran.