The Asian Development Bank (ADB) stepped up support for private-sector-led development in its host country, the Philippines, last year, backing projects ranging from Maynilad Water Services Inc.’s landmark initial public offering (IPO) to digital lending through GCash as part of a broader push to mobilize private capital across the Asia-Pacific region.

In its Private Sector Operations in 2025: Report on Development Effectiveness published on Tuesday, Aug. 25, the ADB said its overall private-sector financing across the region jumped 38 percent to $9.5 billion, while direct private capital mobilization increased 31 percent to $4.7 billion. The Manila-based multilateral lender committed to 49 private-sector projects during the year.

Southeast Asia accounted for 12 of the projects, second only to Central and West Asia with 13. The finance sector had the largest number of committed projects, as the ADB sought to expand lending to underserved businesses and groups, while investments also covered energy, water and other urban infrastructure, agribusiness, digital infrastructure, and other sectors.

For the Philippines, the ADB reported $143.3 million in committed financing and $109.4 million in mobilized capital in 2025. Long-term financing accounted for $129.8 million in commitments and $95.8 million in mobilization, while another $13.6 million was committed and mobilized through the Trade and Supply Chain Finance Program (TSCFP).

Among the Philippine initiatives was Project Tulip, the ADB’s investment in the IPO of West Zone concessionaire Maynilad. The ADB became one of Maynilad’s cornerstone investors, committing $100 million of its own resources and mobilizing another $45 million from the ADB-administered Leading Asia’s Private Infrastructure Fund 2 (LEAP 2).

Maynilad raised ₱34.3 billion, or about $607 million, in gross proceeds from the IPO, 97 percent of which was earmarked for its capital expenditure (capex) program.

The spending program includes projects to improve raw water conveyance efficiency and reliability, expand sewer coverage through new sewer lines and lift and pump stations, build interceptor systems, and retrofit existing facilities to increase treatment capacity and maintain operational efficiency.

The ADB said the investment would help strengthen water security and climate resilience in Maynilad’s concession area in Metro Manila’s West Zone and neighboring Cavite province, which covers about 10.4 million people. It also said its participation as a cornerstone investor helped generate interest from local and international investors in the IPO.

Another major Philippine commitment was a Philippine peso-denominated loan equivalent to $29.8 million to Fuse Financing Inc., the lending arm of GCash, to expand working capital financing for micro-, small-, and medium-sized enterprises (MSMEs).

At least 60 percent of the loan proceeds will be onlent to women-owned and/or women-led MSMEs, while at least 50 percent will go to businesses operating in provinces with high poverty incidence. Fuse will provide unsecured loans through the GCash mobile application, including to borrowers without formal financial documentation or collateral.

The partnership marked the ADB’s first of its kind with a financial technology (fintech) company in Southeast Asia. The project also received the ADB’s highest classification under its poverty and social analysis framework because of its focus on financial inclusion.

The ADB’s 2025 Philippine portfolio also included an investment in Nibertex Pte. Ltd. through ADB Ventures, as well as an additional commitment to the Asialink Promoting Small and Medium-Sized Enterprise Financing through Secured Vehicle Lending Project, which was initially committed in 2024.

Beyond projects counted under the country’s 2025 commitments, the report highlighted the completed Fostering Women’s Empowerment Through Financial Inclusion in Conflict-Impacted and Lagging Provinces Project involving ASA Philippines Foundation Inc.

Under the project, the ADB extended a $30-million loan to finance interest-free and low-cost micro-business and home improvement loans for women in Visayas and Mindanao. The financing was ASA Philippines’ first long-term unsecured funding, while the number of women borrowers reached two million by 2025, 146 percent above the project target.

The Philippines was also among the eligible markets of two regional private equity funds backed by the ADB in 2025.

The ADB committed $50 million to ISQ Growth Markets Infrastructure Fund II (UST), L.P., which targets sustainable infrastructure such as renewable energy (RE), data centers, fiber networks, tower infrastructure, cold storage, and waste treatment in several Asian markets, including the Philippines.

It separately committed $75 million to the TPG Rise Climate Global South Initiative, L.P., which will provide growth capital for low-carbon businesses in areas including energy solutions, green mobility, sustainable fuels and materials, and carbon solutions. The Philippines is likewise among the fund’s target markets in Southeast Asia. - Danielle T. Bayani