ADB Partners with Global Insurers to Unlock $2.75B for Sustainable Infrastructure

Beyond immediate funding, the Master Framework Agreement is set to establish a blueprint for future development finance strategies.

In a landmark move to scale up sustainable development financing across Asia and the Pacific, the Asian Development Bank (ADB) has entered into a groundbreaking partnership with ten of the world's leading insurance companies. This collaboration, formalized through the signing of the Master Framework Agreement for Sustainable Infrastructure, is poised to mobilize up to $2.75 billion in private capital by leveraging the insurers' balance sheets to share ADB’s credit risks.

A New Model for Risk-Sharing and Capital Mobilization

This agreement represents a significant step in unlocking private sector investment in the region by derisking infrastructure projects that are critical for climate resilience and inclusive economic growth. Under the framework, ADB will be able to transfer a portion of the credit risk from its sovereign and nonsovereign loan portfolios to insurers. In doing so, ADB frees up its own capital reserves, enabling it to lend more extensively without compromising its financial stability.

The ten participating insurers include some of the most reputable and highly rated firms in the global market: Tokio Marine Group, Chubb, AXA XL, Liberty Specialty Markets, Coface, Swiss Re, Everest, AXIS Capital, The Hartford, and Allianz Trade. These companies have committed to helping ADB expand its support for sustainable infrastructure by offering substantial credit risk capacity.

Transforming Infrastructure Investment in the Asia-Pacific

The new framework introduces a streamlined approach to underwriting and approval processes for credit risk transfers, significantly reducing transaction times and enabling faster mobilization of co-financing for projects. This will especially benefit sectors such as renewable energy (solar and wind), sustainable transport, green buildings, and data centers that adopt eco-friendly technologies.

ADB Vice-President Bhargav Dasgupta emphasized the strategic importance of the initiative:

"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."

Supporting Energy Transition and Climate Goals

The program is not only a financial innovation but also a vital mechanism for advancing global climate commitments. Participating insurers, like Tokio Marine Group, have aligned their involvement with national and international climate goals. Jerome Swinscoe, President of Tokio Marine HCC – Credit Group, highlighted the firm’s alignment with Japan’s Green Transformation (GX) strategy:

"We are delighted to be able to contribute to ADB’s private capital mobilization efforts in the sustainable finance space, by offering a significant participation in ADB’s new Master Framework."

This collaboration serves as a model of how multilateral development banks and private insurers can synergize to achieve scalable, sustainable solutions. The enhanced risk-transfer mechanism supports ADB's ability to take on larger or riskier projects that would typically face financing hurdles due to regional uncertainties or environmental risks.

A Blueprint for Future Development Financing

Beyond immediate funding, the Master Framework Agreement is set to establish a blueprint for future development finance strategies. By incorporating risk mitigation as a foundational feature, the model ensures that private capital can flow into projects with long-term societal benefits—without bearing disproportionate risk.

ADB’s leadership expects this mechanism to be replicated by other development institutions, increasing the global capacity to fund sustainable infrastructure and climate change mitigation efforts.

In a time when global attention is increasingly focused on resilient infrastructure and green transition, this partnership between ADB and global insurers marks a pivotal moment in shifting the paradigm of development finance—making private capital an active participant in solving public challenges.