The Asian Infrastructure Investment Bank (AIIB) has released its "Strategy on Mobilizing Private Capital for Infrastructure" to further define the bank’s approach to making investment in emerging market infrastructure more attractive to private investors.
The strategy presents AIIB’s long-term goal of positioning itself as a "go-to" institution for providing infrastructure financing solutions in and to client countries. In the medium-term, AIIB will move toward this goal by pursuing a range of activities, including actively originating the bank’s private sector pipeline, executing high-quality transactions and achieving a distinctive and efficient client experience.
"We need institutional investors and private sector funders to come to the table and partner with us if we are going to fill the current infrastructure gap in Asia," said AIIB Vice President for Policy and Strategy Joachim von Amsberg. "AIIB aims to be the champion and leading institution to catalyze private capital for infrastructure investment in the region, and our new strategy will guide us in achieving this objective in a sequenced and prioritized manner."
Three key activities—"AIIB partners," "AIIB leads" and "AIIB creates markets"—are identified as steps to achieve the highest impact on private capital mobilization. With time and experience, the bank’s activities will evolve as it takes on increasingly complex operations in an increasingly challenging operating environment.
AIIB will prioritize transactions that:
- Support the bank’s thematic and sectoral priorities.
- Support reputable clients with a track record in infrastructure development.
- Have a strong likelihood of generating repeat mandates and provide business development opportunities.
- Employ a structure or a product that is innovative and assists in franchise development.
- Employ structures that can be replicated.
- Provide an opportunity for AIIB to play a lead role in the financing.
- Provide the opportunity for AIIB to use multiple products (debt, equity, derivatives).
- Are priced and structured in a manner that facilitates syndication to other lenders.
A set of monitoring indicators has also been established to measure progress as the strategy begins to roll out.
About Us
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. Headquartered in Beijing, we commenced operations in January 2016 and have now grown to 84 approved members from around the world. By investing in sustainable infrastructure and other productive sectors today, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.
