ADB doubles Bangladesh financing to US$2.57b in 2025
Business Report :
The Asian Development Bank (ADB) committed 2.57 billion U.S. dollars in new sovereign financing for Bangladesh in 2025, more than double its 2024 commitment of 1.18 billion dollars.
The 2025 commitment will target priority investments in energy, transport, banking reforms, urban services, climate resilience and small and medium-sized enterprises (SMEs), the Manila-based lender said in a statement Monday.
The ADB commitments will also fund improvements to livelihoods and services in Bangladesh’s southeastern Cox’s Bazar district, said the lender.
“We proudly reaffirm our commitment to supporting Bangladesh’s priorities during this significant transition period, which is further complicated by an increasingly challenging global landscape,” said ADB Country Director Hoe Yun Jeong.
“Our 2025 commitments underscore our enduring partnership with Bangladesh and our shared focus, in close collaboration with the Economic Relations Division (ERD) and other government ministries and agencies, on economic diversification, enhanced infrastructure and services, and human development,” he expressed.
ADB’s sovereign commitments in 2025 demonstrated a strong focus on infrastructure and institutional reforms. Of the total $2.57 billion committed across ten projects, approximately 35per cent supported transport infrastructure, 23per cent was on finance, and 16per cent supported public sector management and governance. Energy initiatives accounted for 11per cent , while water and urban development contributed 9per cent , and human and social development represented 6per cent .
Key commitments include the $688 million South Asia Sub-regional Economic Cooperation Chattogram-Dohazari Railway Project, which will upgrade a critical rail line and build a bypass to enable direct train services from Dhaka to Cox’s Bazar. Also notable are the $500 million Stabilizing and Reforming the Banking Sector Program, Subprogram 1, aimed at strengthening regulation, corporate governance, asset quality, and financial stability; and the $400 million Climate-Resilient Inclusive Development Program Subprogram 2, designed to enhance climate resilience, reduce emissions in climate-critical sectors, and promote inclusive growth, according to the statement.
Enhanced project readiness and portfolio management strengthened implementation in 2025. ADB also provided non-sovereign assistance to the private sector, supporting investments in textiles, renewable energy, trade finance, food security, microfinance, and public-private partnerships (PPP).
Throughout the year, ADB worked closely with other development partners to deliver coordinated support to operationalize the Bangladesh Climate Development Partnership, promoting public and financial sector reforms, and enhancing economic diversification and logistics. These collaborative efforts helped mobilize $720 million in cofinancing. ADB also delivered targeted knowledge support to inform policy on foreign investment, inclusive development, and public debt management.
As of 31 December 2025, ADB’s cumulative sovereign and non-sovereign loan commitments to Bangladesh exceeded $42 billion, with an active sovereign portfolio comprising 48 projects amounting to $10.8 billion.
Looking ahead to 2026, ADB will maintain flexibility to address the country’s evolving needs and priorities. Priorities will include developing economic corridors, strengthening multimodal logistics, advancing public sector reforms and capital market development, promoting private sector development, and accelerating digital transformation.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members-50 from the region.