What’s the News?

$125 million loan signed between India and Asian Development Bank (ADB)

Key Point

• Has been signed to develop climate-resilient sewage collection and treatment and drainage and water supply systems in three cities of Tamil Nadu
• It is part of $500 million multi-tranche financing facility (MFF) for the Program approved by ADB in 2018.

Multi-tranche financing facility (MFF)

• The Multitranche Financing Facility (“Facility” or “MFF”) is intended to finance individual projects under the Regional Road Connectivity Program
• It is a longer-term partnership between Asian Development Bank (ADB) and client country.
• It provides funds for complex project which would need a longer commitment than a typical ADB investment loan could offer.
• It can finance multiple projects under investment program in a sector or in various sectors.