Beijing, December 25, 2015. AIIB’s charter became effective on December 25, 2015, announced AIIB President-designate Jin Liqun. Barely 12 months since negotiations began on the Bank’s Articles of Agreement, the legal requirements were met for this treaty establishing the Bank to enter into force.
“This is a truly historic occasion.” President-designate Jin noted, “our shareholders have worked tirelessly and collegially over the past year to articulate the foundational principles that will underpin the Bank – transparency, openness, accountability and independence—and to develop a state of the art charter and robust policy and governance framework to guide its operations. It is enormously gratifying to see their vision realized. AIIB will offer an innovative financing platform tailored to Asia’s infrastructure financing needs today, and those of future generations. The Bank looks forward to joining the family of multilateral development partners in contributing to broad-based economic and social development in Asia through sustainable infrastructure investment”.
The inaugural meeting of the Bank’s Board of Governors will be held on January 16 and 17, 2016 at which time it will announce the commencement of Bank operations and elect the Board of Directors and the President.
AIIB, which will be headquartered in Beijing, has an authorized capital stock of $100 billion. Reflecting regional character of the Bank, its Asian regional members are the majority shareholders, holding approximately 75 percent of shares. The Bank’s specialized geographic and sectoral mandates will allow it to offer niche sectoral expertise and concentrated market knowledge. The Bank’s sectoral business model will enable it to bring state of the art knowledge of infrastructure trends and innovative financial services to its clients in real-time.
The Bank’s policies have been drafted with support from multilateral development banks (MDBs), bilateral agencies and international experts, and discussed extensively by prospective member countries. President-designate Jin noted, “I believe that we have a first rate policy framework and I am pleased to submit them to the Board of Directors for its approval. Under the clear guidance of our shareholders, and with generous support from fellow MDBs, AIIB is ready to hit the ground running. We aspire to excellence and will adhere to the highest standards in governance. I am firmly committed to fostering a principles-based corporate culture. Our Management will be fully accountable for rigorous implementation of policies and standards. We are ready to make a positive difference. ”
The Bank will offer loans and guarantees and will take equity positions. Preparatory teams are working with the Bank’s member countries and multilateral and bilateral partners to develop the project pipeline. The Bank expects to bring its first projects for approval in the second half of 2016. A number of the first operations will be cofinanced with MDBs. As the Bank’s operations expand, it expects to leverage and mobilize additional funds from the public and private sectors, including institutional investors. As a multilateral organization, Bank recruitment will be conducted through merit-based competitive processes, open to all nationalities. There will be no restrictions on procurement of goods and services from any country.
The AIIB grew from the recognition of the importance of infrastructure to Asia’s development and the need for significant additional long-term financing. Chinese President Xi Jinping announced the initiative in October 2013 and invited countries from around the globe to join an effort to establish a multilateral financing institution to develop and improve regional infrastructure and connectivity. Twenty two countries signed a Memorandum of Understanding to establish the Bank in late 2014. Subsequently, the Chief Negotiators Meeting (CNM) forum was created to negotiate the Bank’s Articles and discuss other issues related to the Bank’s establishment, including policy development. The Multilateral Interim Secretariat was established to support the CNM. Following the March 31, 2015 deadline, 57 countries participated in the CNM. Mr. Jin Liqun was selected as President-designate on August 24, 2015 at the 6th CNM in Tbilisi, Georgia.
The Articles of Agreement remain open for signing by PFMs until December 31, 2015. The deadline for depositing instruments of ratification is December 31, 2016.
Additional information on the AIIB, including its Articles, is available at www.aiib.org.