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Multi-Tranche Financing Facility

February 2008

an financing envelope

MFF is a

for a series of loans & guarantees provided over the medium to long-term to finance programs of investment & advisory work

The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

MFFs can finance


medium to long term programs in a sector large projects with discrete and sequential components financial intermediary credit lines

benefits of using MFF tailored financing for ready projects no commitment to borrow or lend no commitment fees on MFF amount long term partnership forward planning

MFF Clients
Central government Local & provincial governments SOEs & other government entities Private sector

how MFFs work


ADB
Financing Framework Agreement

PHILIPPINES

$500M Multi-tranche Financing Facility Multi120 months

30 days

18 months

60 months

ADB Board Approval Date

Tranche 1 Investments 1-5 ($50M Loan) Mgt approved l

Tranche 2 Investments 6-12 ($100 PCG) Mgt approved

Requirements: CPS context policy framework roadmap investment program Tranche 5 Investments 15 &30 financing plan ($90 LCL) DMF Mgt approved eligibility criteria safeguards execution capacity

FFA
MOA: conditions of financing (reps & warrants)
roadmap investment program DMF implementation arrangements eligibility criteria for investments safeguards and social protection

Financing envelope Availability period Indicative tranches

MFF procedures
Processing
ADB Board approves MFF ADB Management decides on financing request

Execution
Client prepares eligible investments Client requests financing for investments ready to absorb financing Reps & Warranties are confirmed

Thank you