What does ADB’s financial model rely heavily on?

ADB’s financial model primarily relies on issuing bonds in international markets as a key method of raising funds. This strategy allows the bank to leverage its AAA credit rating to secure financing at lower costs, which can then be utilized to support development projects across Asia and the Pacific. By issuing bonds, ADB can tap into a wide array of global investors seeking stable and secure investment opportunities.

This bond issuance is integral in providing the necessary capital for its loans to member countries and for funding various developmental initiatives. It allows ADB not only to finance its operations but also to enhance its ability to respond to the financing needs of its member countries effectively.

In contrast, other options like issuing stocks on the local market, providing grants to government projects, or receiving donations from the private sector do not play a central role in ADB's financial structure. ADB does not operate in the stock market in this capacity, and while grants and donations can support certain activities, they do not form the foundational aspect of ADB’s funding model.