ADB doubled Bangladesh financing in 2025

The Asian Development Bank (ADB) committed $2.57 billion in new sovereign financing to Bangladesh in 2025, more than doubling its $1.18 billion commitment in 2024.

The 2025 lending programme prioritises investments in energy, transport, banking reforms, urban services, climate resilience, small and medium-sized enterprises, and livelihood support in Cox's Bazar.

The portfolio reflects a balanced sectoral spread, with a strong focus on infrastructure development and institutional reforms, according to a press release.

ADB sovereign financing refers to loans, grants, or guarantees provided by the Manila-based lender directly to a national government or to a government-backed entity, with the sovereign (the state) ultimately responsible for repayment.

"We proudly reaffirm our commitment to supporting Bangladesh's priorities during this significant transition period," said ADB Country Director Hoe Yun Jeong.

He added that the 2025 commitments underscored ADB's enduring partnership with Bangladesh, with close collaboration involving the Economic Relations Division and other government agencies to advance economic diversification, infrastructure, services, and human development.

Of the $2.57 billion committed across ten projects, about 35 percent was allocated to transport infrastructure, followed by finance at 23 percent and public sector management and governance at 16 percent.

Energy projects accounted for 11 percent, water and urban development 9 percent, and human and social development 6 percent.

Major approvals included the $688 million South Asia Subregional Economic Cooperation Chattogram-Dohazari Railway Project, aimed at upgrading a critical rail corridor and enabling direct train services from Dhaka to Cox's Bazar.

Other key commitments were the $500 million Stabilising and Reforming the Banking Sector Program, Subprogram 1, and the $400 million Climate-Resilient Inclusive Development Program, Subprogram 2.

ADB said implementation improved in 2025 through enhanced project readiness and portfolio management. Non-sovereign financing supported private-sector investments in textiles, renewable energy, trade finance, food security, microfinance, and public–private partnerships.

Joint efforts with development partners also mobilised $720 million in cofinancing.

As of December 31, 2025, ADB's cumulative sovereign and non-sovereign commitments to Bangladesh exceeded $42 billion, with an active sovereign portfolio of 48 projects valued at $10.8 billion.