Philippines, Oct. 20 -- The Asian Development Bank (ADB) has signed a $3 billion sovereign exposure exchange agreement (EEA) with the World Bank to increase ADB's lending capacity for its developing member countries.The agreement is ADB's first EEA with the World Bank and its sixth EEA with other multilateral development banks (MDBs) since 2020, bringing the cumulative exchanged amount to $9 billion. A sovereign exposure exchange is a risk management tool to reduce portfolio concentration risks. It provides capital relief for sovereign-focused MDBs by exchanging concentrated loan exposures with exposure to countries where their credit exposure is less or nonexistent. By lowering exposure concentration, ADB reduces its capital usage, thereby...