It was established in Tokyo in 1996 as a subsidiary of Asian Development Bank, with initial and subsequent financing from the Government of Japan.
In May 1996, at the twenty-ninth annual meeting of the Asian Development Bank (ADB), the Government of Japan offered to cover the cost of operating and establishing the ADB Institute to address the needs for strengthening the capacity of public and other developmental institutions in developing member countries (DMCs).
[2] The first Dean of the ADB Institute was the leading Filipino economist Jesus Estanislao.
In 2007 Government of Japan provided $14.2 million for ADBI under its Institute Special Fund scheme.
[2] ADBI's work covers applied research, policy seminars designed to disseminate thinking about best practices, and a range of capacity building and training (CBT) initiatives.