The multilateral Asian Development Bank (ADB) recently announced a syndicated funding package of USD 41 million for the Bank of Maldives Plc (BML) to support tourism and other sectors. ADB syndicated the funding, which encompasses loans of USD 13 million from ADB, USD 13 million from the Japan International Cooperation Agency (JICA) and USD 5 million from the Austrian government’s Oesterreichische Entwicklungsbank (OeEB). According to a press release, the majority of “the loan package will be earmarked for lending to SMEs [small and medium-sized enterprises]….”
This lending is complemented by: (1) a concessional loan of USD 9 million from the Canadian Climate Fund for the Private Sector in Asia II, through which the ADB facilitates private sector participation in climate mitigation in island states; and (2) a donation of USD 1 million from the Asian Development Fund-Private Sector Window, which provides grant funding to those ADB members deemed most vulnerable.
ADB Director General for Private Sector Operations Suzanne Gaboury commented, “The blue economy is crucial to future prosperity in Maldives, as its people and economy are intrinsically linked to the health and wealth of the ocean, coral reefs, beaches, and marine life…. This partnership with BML will deliver much-needed financing to the tourism sector and support climate projects and locally owned SMEs, including those owned and run by women.”
BML was established in 1982 and is headquartered in the city of Male, Maldives. As of 2022, it reports total assets of MVR 42 billion (USD 2.7 billion) with 38 branches and 142 banking machines serving 325,000 customers.
Established in 1966, ADB is a development finance institution headquartered in the Philippines. Its mission is to help its 68 member countries reduce poverty in Asia and otherwise improve the quality of life of the region’s citizens. During 2021, ADB issued commitments of USD 23 billion, ending the year with total assets of USD 93 billion.
Established in 2002, JICA coordinates the international development efforts of Japan’s government. As of March 2022, JICA has total assets of JPY 356 billion (USD 2.7 billion) and has undertaken projects in approximately 150 low- and middle-income countries.
OeEB has been operating as the development bank of Austria since March 2008. The institution provides long-term financing for the implementation of private sector projects in developing countries in an effort to promote sustainable development. OeEB also provides technical assistance intended to enhance the development impact of these projects. As of 2021, OeEB reported a total committed portfolio of EUR 1.5 billion (USD 1.6 billion).
By Vaughn Rajah, Research Associate
Sources and Additional Resources
ADB press release
https://www.adb.org/news/adb-bml-sign-41-million-financing-package-support-smes-and-blue-economy-tourism-maldives
BML homepage
https://www.bankofmaldives.com
JICA homepage
https://www.jica.go.jp
OeEB homepage
https://www.oe-eb.at
ADB homepage
https://www.adb.org/
Asian Development Fund description
https://www.adb.org/what-we-do/funds/adf/main
Canadian Climate Fund for the Private Sector in Asia II description
https://www.adb.org/what-we-do/funds/canadian-climate-fund-for-the-private-sector-in-asia-2
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