ADB and Maldives ink $41 million deal to aid SMEs and tourism

Spread the love

ADB, Bank of Maldives sign $41m package to support SMEs and tourism

The Asian Development Bank (ADB) has struck a $41 million financing agreement with the Bank of Maldives (BML) to promote the country’s SMEs and tourism.The financing package includes a loan of up to $13 million from the ADB’s ordinary capital resources, a parallel loan of up to $13 million from the Japan International Cooperation Agency, and a parallel loan of up to $5 million from the Development Bank of Austria.

The ADB blended the debt financing with a concessional loan of up to $9 million from the Canadian Climate Fund for the Private Sector in Asia II (CFPS II) and a grant of up to $1 million from the ADB’s Asian Development Fund (ADF)-Private Sector Window (PSW) to improve development impact and to address bankability issues relating to blue economy transactions in Maldives.

At least 60% of the loan package will be earmarked for lending to SMEs, and 5% will be allocated to women-owned or led firms. According to the ADB, the CFPS II loan and PSW grant would help BML fund and promote climate change mitigation and adaptation projects centred on the blue economy.

Leave a Comment